Mortgage Rescue Scammers Posing as “Help” Target Minorities, Elderly
OH NeighborWorks Groups Launch First Statewide Anti-Scam Day
OH Alert! Day Arms Homeowners with Information and Tips to Avoid Scam
Columbus, Ohio – Ohio NeighborWorks groups from across the state are sending a warning to homeowners about a new threat that could increase foreclosure rates. Mortgage rescue scammers posing as “help” are preying on minorities, elderly and other vulnerable homeowners struggling to pay their mortgage. Scams ranging from fake government programs to the “bait-and-switch,” luring homeowners to sign over the rights to their home to scammers are leaving homeowners worse off than they were from the threat of an impending foreclosure.
Affordable housing non-profits in Columbus, Cleveland, Cincinnati, Ravenna, Akron, Springfield, Dayton and Toledo will partner on Wednesday, June 9th to educate Ohio homeowners about common mortgage rescue scams to watch out for, give tips on how to avoid scams, how to report a scammer to the Attorney General’s office and where Ohio homeowners can access trusted mortgage modification help from a HUD-certified housing counselor.
The groups are part of the NeighborWorks Collaborative of Ohio, created to reach more families in need across Ohio. The Collaborative is the only statewide foreclosure rescue fund and prevention initiative in the nation.
“The foreclosure crisis has created a breeding ground for crime,” said Paul Poston, NeighborWorks Great Lakes District Director. “Scammers will stop at nothing to reach vulnerable homeowners by posing as housing counselors, speaking their native language, even joining their faith-based organizations to prey on them when their guard is down. The need for NeighborWorks organizations has never been greater as struggling homeowners try to navigate this fragile housing landscape. We’re sending a message that the only foreclosure help homeowners can rely on is from a HUD-certified housing counselor.”
On June 9th, eight non-profits will distribute information in their respective cities through various events planned as part of national NeighborWorks Week, when NeighborWorks groups around the country implement community development initiatives. The campaign includes information such as the following red flags to look for to identify scam:
Warning Signs That Indicate You May Be Dealing With A Loan Modification Scammer
- A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure.
- A company/person guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise they will try their very best to help you.
- A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. The minute you have trouble making your monthly payment, contact your mortgage lender.
- A company pressures you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read, and you don't fully understand. A legitimate housing counselor would never pressure you to sign a document before you had a chance to read and understand it.
- A company claims to offer "government-approved" or "official government" loan modifications. They may be scam artists posing as legitimate organizations approved by, or affiliated with, the government. Contact your mortgage lender first. Your lender can tell you whether you qualify for any government programs to prevent foreclosure. And, remember, you do not have to pay to benefit from government-backed loan modification programs.
- A company/person you don’t know asks you to release personal financial information online or over the phone. You should only give this type of information to companies that you know and trust, like your mortgage lender or a HUD-approved counseling agency.
“We have received calls from many homeowners who paid thousands of dollars because they were promised a loan modification,” said Poston. “Then the homeowners are notified that their home is being sold or foreclosed on and it comes as a complete shock. When a NeighborWorks organization gets involved the best case scenario is we can stop the proceedings and save the home. In one case we were even able to get a homeowner’s money back, but that is rare. Most of the time the homeowners are robbed of thousands of dollars that could have gone toward their mortgage.”
Ohio Alert! Day is part of a national public education campaign initiated by NeighborWorks America as a request from Congress to empower homeowners to protect themselves against loan modification scams, find trusted help and report illegal activity to authorities.
NeighborWorks America is working with national, state and local partners on the ground and 235 community-based affiliates. The campaign will alert thousands of homeowners in hundreds of at-risk communities through real-life scam stories, fliers, postcards, e-cards, posters, print advertising, local PSAs, events, word of mouth and social media activity.
NeighborWorks helps Ohio families facing foreclosure by educating area homeowners through financial literacy and homeownership education and counseling, working with the Homeowner’s™ HOPE Hotline -- 888-995-HOPE (4673) -- to connect homeowners at risk with the organization’s HUD-certified counselors and through continuous programming that revitalizes and strengthens the community.
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About NeighborWorks® America
NeighborWorks® America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. Since 1991, we have assisted nearly 1.2 million low- to moderate-income families with their housing needs. Much of our success is achieved through our support of the NeighborWorks network of more than 230 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $15 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals. www.nw.org.
The eight participating organizations in Ohio are: Columbus Housing Partnership; East Akron Neighborhood Development Corporation; Home Ownership Center of Greater Cincinnati; Neighborhood Housing Services of Greater Cleveland; St. Mary Development Corporation; Neighborhood Housing Services of Toledo, Inc.; Neighborhood Development Services; and Neighborhood Housing Partnership of Greater Springfield.