Quiz: Avoiding Foreclosure Fraud
by Staff
If you're faced with the possibility of a foreclosure, the last thing you want to worry about is fraud derailing the process. How much do you know about foreclosure fraud and how to avoid it? Take this quiz to find out!

If you miss a mortgage payment, how should you respond to the lender?

  • Don't say anything; they might not notice.
  • Contact an attorney to represent you to the lender.
  • Contact the lender, let them know about your situation and try to find a solution that allows you to catch up on payments.

If you're searching for an attorney to represent you in a foreclosure, how can you check his or her credentials?

  • Ask your friends if they know a good lawyer.
  • Check prospective attorneys with state and local bar association records.
  • Only use a lawyer who's part of a large firm; small law offices are prone to fraud.

How can you verify the credentials of a non-legal foreclosure service provider?

  • Ask for a contract and copies of all documents related to the provider's work on your case.
  • Non-attorneys shouldn't be involved in any part of the foreclosure process.
  • Service providers should always be allied with a bank or financial institution.

What's a surefire way to identify a foreclosure scam artist?

  • Any party who gives you a deadline is pushing a scam.
  • Scam artists can come from any size business and present themselves in whatever manner might best win your trust.
  • Never trust a service provider who doesn't work in a legitimate law office.

What's the first thing you should do if you're approached by a foreclosure assistance company?

  • Check its name with the local bar association.
  • Ask your bank if they've heard of the company.
  • Find out how the company got your name and information.

How do you identify who holds your mortgage?

  • Check your records to see who first held it when you bought the home.
  • The bank that contacted you about the missed payment is the one who holds the mortgage.
  • Mortgages are bought and sold; it may be best to have an attorney identify who holds your mortgage.

If a "foreclosure rescue agency" guarantees it can save your home, how should you verify the claim?

  • In general, this kind of claim is unfounded and should be viewed with great suspicion.
  • Ask the agency to provide references from satisfied customers.
  • Check with your local bar association to verify the agency's track record.

What's the best way to avoid foreclosure fraud?

  • Do everything you can to avoid foreclosure in the first place.
  • Hire a good lawyer.
  • Don't talk to anyone but your own bank.