Home loan scams are really part of the real estate landscape in any market, but generally speaking affecting only a small percentage of consumers. Now, however, things are very different. This housing and mortgage meltdown ranks right up there among the worst ever to sweep across from coast to coast. It brings with it some juicy opportunities for the con men among us and are they ever trying to take advantage of it.
Many have zeroed in on the mortgage loan modification programs heavily promoted by the government, but only tepidly adopted by the private sector. That has left a huge void for them to slither in, to the detriment of unwary mortgage borrowers. The media continuously reports on the extent of the problem and new twists to the scammers' arsenal to sound the alarm, but the mayhem marches on. Distressed homeowners are promised lower monthly payments and stoppage to the foreclosure process and all sorts of other goodies, anything to make them take the bait. At the end of the day the scammer pulls a Houdini with a pocketful of money from the borrower.
HUD is now taking a tougher stance on the issue. It just unveiled a website www.preventloanscams.org to try to put a stop to this bloodletting. It's doing this together with the Loan Modification Scam Prevention Network, a national group of private and public entities tasked to power up efforts to fight these vultures on local, state and national levels. The network is run by the Lawyer's Committee for Civil Rights Under Law. The website is the go-to place for homeowners to report anything that smells like a scam and hopefully they'll start using it as needed.
Southern Nevada - including Las Vegas, Henderson, Mesquite, Summerlin, Anthem and Mountains Edge - mortgage borrowers and those in other hard-hit areas around the country are being relentlessly pursued by con artists working this angle. So far law enforcement has had only marginal success combating this scourge. The new website will give homeowners an easy access to a national complaint resource that is designed to expedite enforcement on the local level. It's a weapon that will help keep these scammers in check.
Photo by tomsaint11
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Provided by:
Esko Kiuru
Mortgage and real estate market commentator
www.BluefoxToday.com - syndicated mortgage and real estate blog
eskokiuru@gmail.com
My cell: 702-499-1006
Esko I can't remember if it was on one of your blogs or someone elses that I made this statement. The Loan Modification Market has become the new Subprime Market. By that I mean, that the snakes that slithered through and put many homebuyers in the position that they find themselves in right now are not through taking advantage of those same people. The snakes have not gone away, they have just slithered across the street and are doing Loan Modifications.
George,
Couldn't agree with you more. Hopefully HUD will carry out its mission to its fullest.
Esko, it just appalls me that as we try to clean up this mess, there are more bottom feeders creating more havoc. Can't people just play nice?
Connie,
Exactly. Our oversight function has to get tighter to keep these people in check.
It's so very important to move this information forward in our city!! Thanks for a great blog Esko!
Renee,
Our homeowners really need to be alert to these scam artists.