Category:  Clients

Mortgage Rescue Scams, the Latest Ugly Face of the Mortgage Crisis

As someone who has been working for several years to help the good guys battling foreclosure spread the word about where to get mortgage assistance, it has been an eye-opening experience to learn just how low mortgage scam companies will go to make a buck. As if strapped homeowners don’t have enough to worry about trying to make their mortgage and keep a roof over their family, now they must be forewarned that the recent mortgage crisis has created a breeding ground for crime.

Corrupt companies posing as the foreclosure “help” are popping up across the country claiming they can modify your default mortgage, “guaranteed.” The catch? It might cost you $1,500 or more, and in some cases, it ends up costing your home. Scams ranging from fake government programs to the “bait-and-switch,” which tricks the homeowner into signing the rights to their home over to a scam artist, are leaving homeowners worse off than they were from the threat of an impending foreclosure.

It’s amazing how little regard scammers have for someone who’s trying to put the pieces together. They prey on vulnerable homeowners when their guard is down, at church, in the community, at their front door. They get access to a homeowner’s bank account, and often go in and withdraw money through automatic payments that get deducted earlier than scheduled, then they disappear off the map leaving no trace and no loan modification behind. I’ve heard stories about homeowners who weren’t even in default, they were simply trying to be proactive and get some advice. Now they’re out thousands of dollars. 

And the saddest part? All that hard-earned money could have and should have gone toward their mortgage. In this volatile housing market, homeowners should be wary where they turn for help. A HUD-certified counselor is the only foreclosure prevention help you can trust.

If you need help, check out the NeighborWorks' Loan Modification Scam Alert website.

(Read the press release and see some of the news coverage about this issue here.)

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