Daily Real Estate News | Friday, January 13, 2012
Scammers have targeted delinquent borrowers during the past few years,
hoping to take advantage of their desperation and financial
inexperience. Their approach typically involves posing as a
representative of a nonprofit or government agency who can help with a
loan modification or some other form of assistance.
Sheri Stuart, education manager at Springboard Nonprofit Consumer
Counseling, says she frequently encounters consumers at courses offered
by her organization who have been victimized by these scams. Stuart says
she recently met a couple from Southern California at one of these
events who’d paid $3,000 to a fraudulent company in an attempt to keep
their home out of foreclosure.
“It’s disconcerting,” she says. “It has a ripple effect. It not only
affects the home owners, it affects the communities as well.”
To keep more consumers from being taken in by these scams, Stuart
offers the following four red flags to help determine whether borrowers’
knight in shining armor is actually a swindler on the make:
1. They ask for money up front. “That’s usually an indication that someone has an ulterior motive,” Stuart says.
2. “Phantom help” appears out of nowhere. If a
consumer hasn’t proactively contacted anyone about missed mortgage
payments, but suddenly gets calls and mail about getting help for missed
mortgage payments, it’s probably a scammer.
3. They present phony credentials. Many companies that
claim to offer assistance will have official-looking seals from
credentialing institutions on paperwork, promotional materials, and Web
sites. Research those organizations to make sure they actually exist.
4. They make promises they can’t deliver. If they make
ambitious guarantees about being able to modify loans or halt
foreclosures, that should set off alarm bells. “Nobody can promise you a
loan mod,” Stuart says.
If your clients suspect they have been or are being targeted, point them to Loanscamalert.orgloanscamalert.org to get more information and report the scammers.
By Brian Summerfield, REALTOR® Magazine
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