You may have heard that filing bankruptcy will stop a foreclosure. This is true — but only temporarily. Filing bankruptcy brings an “automatic stay” into effect that stops any collection and foreclosure while the bankruptcy court administers the case. Eventually, you must start paying your mortgage lender, or the lender will be able to foreclose. Bankruptcy is rarely, if ever, a permanent solution to prevent foreclosure. In addition, bankruptcy will negatively impact your credit score and will remain on your credit report for 10 years.

This goes hand-in-hand with Debt-elimination schemes. Scammers may claim to be able to “eliminate” your debt by making illegitimate legal arguments that you are not obligated to pay back your mortgage. These scammers will provide you with inaccurate claims about applicable laws and finance, such as that “secret laws” can be used to eliminate debt or that banks do not have the authority to lend money. Do not stop making payments on your mortgage based on their claims.

Never make your mortgage payments to anyone but your mortgage company!

Never pay a fee to claiming they can “save your house”.  You are the only person who can do that.  You need to contact your mortgage company and speak with someone who may be able to help set up a loan modification.  Scammers prey on those who don’t know what to do or who to reach out to.

Contact us if you think you are being targeted by scammers.  We will be glad to get you some contact information for your lender so you can deal with them directly.