According to a national anti-scam effort that includes mortgage funders Fannie Mae and Freddie Mac, mortgage modification scammers are as aggressive as ever more than four years after the bursting of the US housing bubble.
The national effort, called The Loan Modification Scam Prevention Network (LMSPN), is comprised of Fannie Mae, Freddie Mac, the Lawyers’ Committee for Civil Rights Under Law, the Homeownership Preservation Foundation (HPF), and NeighborWorks America, along with national government agencies including the US Department of Housing and Urban Development (HUD) and the US Department of the Treasury.
LMSPN says that more than 30,000 loan scams have been reported since the campaign was launched in the fall of 2009.
Loan modification scammers have become increasingly aggressive online, using targeted web advertisements to reach homeowners who are searching for mortgage relief over the Internet. Homeowners should be aware that no one other than your lender can guarantee any form of mortgage relief. The HPF HOPE Hotline’s trained and experienced counselors can provide loan modification counseling at no cost to the consumer.
“As the ways that distressed homeowners search for mortgage help evolve, so do the tactics that foreclosure prevention scam artists use to stay front and center,” said Josh Fuhrman , Senior Vice President of Government and Community Relations at HPF.
According to Fuhrman, once a scammer finds a method that works, such as advertising ‘guaranteed’ outcomes via a website, they will use it to their full advantage. He said it’s important that homeowners get educated about the new techniques that scammers are using.
Consumers can visit PreventLoanScams.org online or call HPF’s HOPE Hotline at 888-995-HOPE (4673). Additional information is also available at Loan Scam Alert
“There is still a high level of foreclosure rescue fraud occurring in this country, with TV, online, and radio ads promoting quick, fake fixes to stop foreclosure,” said Yolanda McGill , Senior Counsel at the Lawyers’ Committee for Civil Rights Under Law.”
She points out that, since 2010 the Lawyers’ Committee has collected and analyzed 10,000 scam complaint reports each year in its national Loan Modification Scam database. McGill said that the Network, now in its fourth year, will continue to collect scam information and use it to stop these scams.
Find out more at Loan Scam Alert
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