Forclosure

Foreclosure is the legal process by which your lender obtains the property. First Federal Lakewood does not want to foreclose on your home, but sometimes that may be the only option.

 

There are consequences to foreclosure and it will affect your credit. It could also affect your ability to obtain financing for another home. Your lender is required to report all foreclosures and deeds-in-lieu of foreclosure to the Internal Revenue Service. Because the IRS may view these events as forgiveness of debt, you may have increased tax liability. We recommend you consult with a tax advisor for additional guidance.

 

There are resources to help you understand and work through the foreclosure process. Please see our Resources Page for more information.

 

BEWARE OF FORECLOSURE RESCUE SCAMS – TIPS & WARNING SIGNS

 

Scam artists are stealing millions of dollars from distressed homeowners by promising immediate relief from foreclosure, or demanding cash for counseling services when HUD-approved counseling agencies provide the same services for FREE. If you receive an offer, information or advice that sounds too good to be true, it probably is. Don’t let them take advantage of you, your situation, your house or your money. Remember, help is FREE.

 

How to Spot a Scam – beware of a company or person who:

  • Asks for a free in advance to work with your lender to modify, refinance or reinstate your mortgage.
  • Guarantees they can stop a foreclosure or get your loan modified.
  • Advises you to stop paying your mortgage company and pay them instead.
  • Pressures you to sign over the deed to your home or sign any paperwork that you haven’t had a chance to read, and you don’t fully understand.
  • Claims to offer “government-approved” or “official government” loan modifications.
  • Asks you to release personal financial information online or over the phone and you have not been working with this person and/or do not know them.

 

How to Report a Scam – do one of the following: 

  • Go to http://www.preventloanscams.org/ and fill out the Loan Modifications Scam Prevention Network’s (LMSPN) complaint form online and get more information on how to fight back. Note: you can also fill out this form and send to the fax number/email/address (your choice!) on the back of the form.
  • Call 1(888)995-HOPE (4673) and tell the counselor about your situation and that you believe you got scammed or know of a scam.

 

The Loan Modification Scam Prevention Network is a national coalition of governmental and private organizations led by Fannie Mae, Freddie Mac, NeighborWorks America™ and the Lawyers’ Committee for Civil Rights Under Law.