Beware: Home Loan Modification Scams
A growing number of firms are soliciting homeowners and offering help for fees that average $3,500. Instead of providing loan-modification help, some firms take homeowners' money and do little else. Please do your research, and if something seems to good to be true - it is!
Types of loan-modification scams
• Falsely portraying employees as government counselors approved by the Department of Housing and Urban Development.
• Operating with names similar to housing non-profits to confuse homeowners.
• Using lists of foreclosure auctions to cold-call people behind on mortgages.
• Targeting specific groups, such as the elderly, and claim close contacts with lenders.
Where to go for help
The first step for people facing foreclosure is to go to the government Web site makinghomeaffordable.gov and answer questions to see if they qualify for a modification.
Homeowners who qualify, and any homeowners facing foreclosures, should call the Arizona hotline at 877-448-1211. The state-run service is staffed by counselors who can refer people to non-profit organizations that offer free loan-modification help.
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