Beware of Mortgage Foreclosure Rescue Scams and Loan Modification Scams
Because information about individual foreclosures is publicly available, anyone is able to access information including the owner's name and address, at the very least, and in some states, other sensitive information. This means that if you are in foreclosure, you could become the target of mortgage loan scammers who seek out desperate homeowners to take advantage of their situation.
The U.S. Government Accountability Office released a report in July 2010 entitled "Home Ownership Preservation," which warns: "The current foreclosure crisis has provided persons who may perpetrate mortgage foreclosure rescue and loan modification schemes with unprecedented opportunities to profit from homeowners desperate to save their homes.” The report says there are two main types of foreclosure rescue and loan modification scams: advance-fee loan modification schemes and sales-leaseback schemes, with advance-fee schemes being the most common. The U.S. Federal Trade Commission recently reported on a new twist on the advance-fee scam - a forensic mortgage loan audit.
Don’t be fooled by a mortgage foreclosure rescue scam – or a loan modification scam. You can find specific guidance on how to avoid mortgage loan scams HERE.
Remember, the Homeowner's HOPE™ Hotline is a central point of contact for homeowners who think they may be a victim of a scam. We have a dedicated team of foreclosure prevention counselors, trained specifically to take information on reported foreclosure scams and work with you to address any financial issues. If you believe you are the victim of a scam, or you know someone who is, don’t wait another minute- please call the Homeowner's HOPE™ Hotline at 888-995-HOPE™ to report the scam.
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