As with any crisis that occurrs, whether it be a natural disaster or the current economic turmoil we’re experiencing, we’re going to see unscrupulous people come out of the woodwork trying to prey on the hardships of others. Well, it’s no different with the current mortgage and housing crisis we’re seeing across the country.
However, the Federal Government is taking steps to cut down on the number of victims of mortgage modification scams. As reported by CNBC today:
“Top federal and state officials on Monday announced a broad crackdown on mortgage modification scams, accusing “criminal actors” of preying on desperate borrowers caught up in the nation’s housing crisis.
Government officials say scammers are seeking to take advantage of borrowers in danger of default by charging them upfront fees of $1,000 to $3,000 for help with loan modifications that rarely, if ever, pay off.
“These predatory scams callously rob Americans of their savings and potentially their homes,” Treasury Secretary Timothy Geithner said. “We will shut down fraudulent companies more quickly than before. We will target companies that otherwise would have gone unnoticed under the radar.”
The Federal Trade Commission has sent warning letters to 71 companies it says were running suspicious advertisements.”
Now, are there viable, legitimate organizations that can help people in need of help? Definitely. However, it’s important that you do your homework and investigate any such organization offering to help. Check with the Better Business Bureau, ask for references, and don’t hand over any money until you’ve checked multiple sources.
In this case, help is available for free from government-approved housing counselors. You can find a list of them here: www.makinghomeaffordable.gov