Loan Modification Scam Alert

National Campaign Empowers Homeowners to Combat Loan Modification Scams

A network of local, state and national partners announces new resources for at-risk homeowners to recognize scams, report them and find legitimate help 
  
October 26, 2009 — Today in Los Angeles, a partnership of local, state and national government agencies, nonprofit organizations and financial institutions gathered at City Hall to launch a national public education campaign designed to help homeowners protect themselves against loan modification scams, find trusted help and report illegal activity to authorities.  This was the first of several kickoff events scheduled to announce the “Loan Modification Scam Alert” campaign rollout in major cities across the country.

Los Angeles is one of several metropolitan areas in California to consistently rank among cities with the highest foreclosure rates. It has the highest number of homes in foreclosure in the nation. “Too many residents in Los Angeles, like homeowners nationwide, are losing thousands of dollars and their homes to scam artists who make big promises and then do little or nothing to help them save their homes,” said Los Angeles Mayor Antonio Villaraigosa. “Anyone can be a victim and the people of Los Angeles need to know what resources are available to them. They need to know that legal aid groups, financial institutions, and HUD-certified counselors are offering free services to anyone seeking help.”

Homeowners are urged to report scam activity at once to the proper authorities through the local affiliate, Los Angeles Neighborhood Housing Services (LA NHS).  “Borrowers must avoid any individual or firm that asks for a fee in advance, guarantees a loan modification or says to pay them instead of paying the mortgage.  Only a lender can guarantee a loan modification and they do not charge,” said Lori Gay, president and chief executive officer of campaign partner LA NHS.

Read on for more information about how to get help and submit a complaint.