New Network Preventing Mortgage Scams
Advertising is all over TV, often late at night. It is on prime-time radio in English and Spanish, as well as on the internet. It is in newspapers, on street flyers, signs and billboards, and on other direct mail solicitations. At-risk consumer's information is widely distributed through out the loan modification industry.
Loan modification scams are schemes in which unscrupulous people take financial advantage of homeowners facing foreclosure. Scammers target homeowners in distress guaranteeing help with saving their homes. In reality, the scammers may hasten foreclosure by charging expensive upfront fees, doing little to no work, taking title or redirecting mortgage payments.
The alleged "rescuers" employ various scams with disastrous consequences for homeowners: phantom foreclosure counseling, lease-back or repurchase scams, fraudulent refinance, fraudulent loan modification, bankruptcy foreclosure, and reverse mortgage fraud. While waiting for the promised relief, homeowners not only lose their money but often fall deeper into default and lose valuable time.
Federal, state and local law enforcement, as well as national, state and local housing, legal aid, consumer protection and civil rights non-profit organizations are working hard to stop the proliferation of loan modification scammers.
Several national players such as Fannie Mae and Freddie Mac are founding partners.
Click below for resources from this non-profit organization.
How Do I Know if I am a Victim of a Scam?
The easiest way to determine if you are a victim of a loan modification scam or have been approached by a potential scammer is to just ask yourself two simple questions.
Report a Scam
Help stop the scourge of Loan Modification Scams! If you think you have been scammed, call 1-888-995-HOPE.
Legitimate Foreclosure Assistance
It is important for homeowners to know that services to avoid foreclosure can be FREE. In fact, homeowners should never pay for help with a loan modification. There are many reputable organizations that provide free assistance to homeowners facing foreclosure.
State By State Resources
An extensive array of local resources