Monday, March 16, 2009

Scammers Prey On Desperate Homeowners

As the pain from the housing market disaster has spread, so have the number of people trying to profit from that pain. With the advent of President Obama's foreclosure prevention plan, scam artists are using this plan to try and steal money from troubled homeowners.

These crooks promise to negotiate with the banks for the borrower. Of course, there is an up-front fee, often more than $1,000. charge fees for what they tell borrowers And, of course, the borrowers get nothing in return.

The Federal Reserve recently issued this advice for people seeking to modify their mortgages:

Work only with HUD-approved nonprofit counselors. (See www.hud.gov)
Don't agree to pay a fee before you are provided with the promised service.
Beware of people offering "guaranteed" results.
Don't sign blank forms or documents you haven't read.

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