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The housing market is still shaky. Homeowners are still unemployed or underemployed. All the ingredients needed to whip up highly effective loan modification scams. And they are rampant.
However, the US Department of Housing and Urban Development is teaming with the Loan Modification Scam Prevention Network to make it easier for consumers to report scams. Launching PreventLoanScams.org HUD and this fraud prevention network hopes to protect homeowners before it is too late.
Homeowners are Running Out of Time
Any financial service scam is potentially crushing. However, loan modification scams have an additional twist–the homeowners are running out of time and options.
This pressure makes it easier for scam artists to prey on these victims. At the same time, every moment these homeowners are misdirected by fraudsters the less likely they are to get a real home saving result.
Loan Modifications are Confusing
Economic conditions are creating lots of mortgage fraud opportunities, but it doesn’t help that loan modifications are so confusing. Unlike a typical mortgage refinance, loan modifications are very unfamiliar to most and horribly complex. This causes confusion–an opportunity for wolves in sheep’s clothing.
Homeowners are looking for help and guidance. Loan modification scams set-up up tempting marketing and advertising to suck in desperate victims.
HUD and Scam Prevention Network Help
This new loan modification fraud prevention network will give struggling homeowners a single, convenient Web location to report scams they are approached with and verify the legitimacy of services and companies.
I applaud any effort to help troubled borrowers get to debt and financial relief as fast as possible.
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