Wednesday, April 18, 2012

3 Ways to Avoid Loan Modification and Foreclosure Rescue Scams

Despite the housing market decline, owning a home is still a cornerstone of the American dream and a key step to building wealth. But did you know that homeowners have lost over $57 million to modification and foreclosure rescue scams since 2009?* 

With Financial Education Month upon us, it’s a perfect time to remind homeowners how to protect themselves from scammers . The Loan Modification Scam Alert campaign has successfully educated millions of Americans about the signs of scams and helped over 22,000 homeowners report scams in the Loan Modification Scam Prevention Network database.  

The trouble is that new programs like the Independent Foreclosure Review and the $25 billion national mortgage settlement, give scammers even more ways to lure vulnerable homeowners with phony promises of assistance. Need evidence?  See this recent warning from New York Attorney General Eric Schneider.  

Do your part to get the word out. Scam tactics change often, but the ways to spot a scam remain constant. Below are the top three ways to spot a scam according to Loan Modification Scam Alert. Please share this information with your partners, family and friends and via email, Facebook and Twitter.

*Original loan modification scam complaint information is compiled and housed in the national Loan Modification Scam Prevention Network Database, which is maintained by the Lawyers’ Committee for Civil Rights Under Law, located in Washington D.C.