By Timothy Kelly, Call Center Specialist
Foreclosure calls have skyrocketed in the last year
A record number of people struggling with mortgage payments or facing foreclosure are falling prey to scams. According to a report released by the Federal Trade Commission (FTC) in February, nearly 8,000 complaints were filed against companies that were offering services for loan modification or foreclosure assistance in 2009. Only one such complaint was filed in 2008.
At 211info we’ve been working with local government and community partners referring homeowners to agencies that are certified by the federal Department of Housing and Urban Development (HUD) for free foreclosure-prevention counseling. Some callers who have heard about the scams are suspicious of anyone offering help with loan modification.
As a call center specialist who specializes in foreclosure calls I hear, firsthand, how many people are exposed to these
scams. The other day I received a call from a man in Bend who had been solicited by someone who was offering to save his home for a little money up front. Thankfully, this individual trusted his instincts and gave 2-1-1 call to see if the solicitation was legitimate. It wasn’t and I was able to provide contact information for a local HUD-certified counseling agency.
Others, unfortunately, have already fallen victim. I spoke with a Portland woman who was in dire financial stress because she has already given money to a scammer who had promised her a way out. A few up-front monthly payments later and she was in a $3,000 hole with no solutions. Eventually,she learned about free foreclosure counseling and I was able to refer her to someone, but it is devastating to think this could have all been avoided.
The scams are often advertised as offers to rescue homeowners from foreclosure. Some companies use public records to contact people whose homes are approaching foreclosure, then call or send letters offering assistance. Some companies take a fee and then disappear; others convince homeowners to make payments directly to them while they claim they are negotiating with the lender.
These scams not only rob struggling families of what little money they have left, but also make it more difficult for nonprofit agencies that actually want to provide free assistance for loan modification and foreclosure prevention. People simply don’t know whom to trust.
The Federal Reserve Board offers tips for consumers for avoiding these scams on their website.
http://www.federalreserve.gov/pubs/foreclosurescamtips/default.htm
For referrals to foreclosure prevention counseling call 211info at 211 or 1-800-SAFENET
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I just went through your blog and read your post. Wherever there are people in financial difficulty there will be con men and scammers eager to pick up the pieces and take what little you have left. They prey on people’s fears and problems. Even some “reputable,” financial institutions are a party to these sort of scams. These scams vary from overpriced loans to some situations where you will find yourself evicted from your property and still responsible for the debt or worse, renters in your own home. -Tina
Tina,
Unfortunately, you are right about people preying on those in financially difficult times. Thankfully there are ways to help these people, it is just a matter of connected the people who need the services to the services. Thanks for your readership.
-Matt
[...] last summer, 211info has been involved with preventing mortgage fraud and foreclosure through City of Portland and Oregon state partnerships. We were honored when the [...]