5 Tips for Avoiding Mortgage Elimination Scams

In an OCC Alert, dated September 5, 2007, regarding fraudulent debt elimination schemes stated, "A mortgage scam is a The Office of the Comptroller of the Currency (OCC) is aware that the volume and variety of fraudulent schemes supposedly designed to "eliminate" debt is increasing. These schemes are being promoted via the Internet and in seminars throughout the United States. The fraudulent schemes are being marketed to ordinary people, not just the wealthy or sophisticated, including borrowers who are current on their payments and those approaching foreclosure."[1] To be sure you do not fall into one of these traps, here are 5 tips for avoiding mortgage elimination scams.

1. Do not pay any upfront fees.

This is a classic request that is made for not doing any of the work right up front. They normally ask for anything from $400 - $7,500. Most of this upfront fee is used to file fraudulent claims against the financial institution in which you owe the money.

2. Don't sign any documents that you receive in the mail.

The problem here is that the scammers do not want you to date your signature. They end up filing to the OCC on your behalf that your mortgage institution is in violation of acting properly towards your account. This is a false claim by the elimination scammers...but you indeed could be liable because you signed their document. This allowed them to go ahead and proceed with whatever plan they had to work on your behalf.

3. Avoid these agencies that the OCC is already aware of:

America's Advantage
eliminatemortgages.com
goodbyemortgages.com
mortgageelimination.net
the7thfire.com
Financial Dynamics
remedywithredemption.com [2]

4. Don't trust businesses that say they can get you additional money and clear your mortgage debt.

This is just plain greedy. Not only do the fraudulently claim to clear your mortgage debt, they also appeal to your need for money. These are the same perpetrators that ask for an upfront fee and /or your signature to get started.

5. Any agency that claims there are "secret" laws that can eliminate debt.

There are no hidden laws that can free an obligator from paying a debt. These agencies claim that they know something that you don't, and will never be able to find out on your own. The fact is the only "secret" law they know is the one they made up to get their hands on your hard earned money.

Many of these scams blame the financial institution for your mistakes. The bottom line is that if the answer sounds too good to be true, don't walk away-- run away from the it. If you are current on your mortgage payments, the sensible thing to do would be to ask your financial institution about refinancing options. Alternatively, keep paying like you have been, avoid being too anxious about a fast way out resolution. Some of the invisible consequences can really hurt the victim the most. They include identity theft, far more credit damage then before, and additional money lost. Searching for the loop-hole as a way out can easily put you in a desperate situation. You could end up losing more than your mortgage. The risk is just not worth it.

[1] http://www.occ.treas.gov/ftp/alert/2007-55.html. Accessed August 15, 2008
[2] http://wiki.answers.com/Q/Is_mortgage_elimination_a_scam_or_legitimate, Accessed August 15, 2008