IN CHICAGO, ACROSS IL - Mortgage Scams Rise as Housing, Credit Doldrums Continue!
LATEST SCAMS TARGET THOSE STRUGGLING TO KEEP THEIR MORTGAGES CURRENT!
Unfortunately, many scams victimize those least likely to defend themselves against them! This is nothing new!
In light of today's sluggish housing market, however, here in Chicago and elsewhere, a few mortgage scam artists have collected hundreds of dollars in up-front fees, but have failed to deliver on their promises of loan forbearance or foreclosure avoidance to clients they supposedly serve.
In last Monday's Chicago Tribune, summarized in an article written by Michael Oneal, IL Attorney General Lisa Madigan has begun legal action against more than 20 IL firms suspected of mortgage fraud. The firms include one targeting the Hispanic Community in Chicago, with deceptive radio ads promising to negotiate a loan modification on their client's behalf, along with legal representation in court, if needed. The company allegedly has delivered neither, despite charging up-front fees.
Nationally, U.S. Attorney General Eric Holder says the FBI has targeted roughly 2,100 companies suspected of creating "rescue scams." That case-load figure is up four times from the level of five years ago.
Madigan, Holder, and other officials point out that all Mortgage Counseling Services provided under the Obama Administration's Making Home Affordable Plan are FREE OF CHARGE, and approved by the U.S. Department of Housing and Urban Development. The website - MakingHomeAffordable.gov.
But that has not stopped other, less-than-scrupulous companies from taking their message to desperate groups of homeowners in danger of imminently losing their homes. Many are poor, and members of minority groups.
One KS firm promised to negotiate a Loan Forbearance Agreement on behalf of the troubled homeowner, and even offered legal advice should the borrower need to file for Chapter 11 Bankruptcy Protection. They collected an up-front fee, but apparently did nothing after that.
Another NY firm allegedly created a complicated fraud scheme involving unethical lenders and straw buyers. They offered to purchase the borrower's home, pay off the lender to stop foreclosure, and rent back to the borrower. Lenders were not paid back, foreclosures proceeded, and the owner's subsequently evicted.
IL Attorney General Madigan warns homeowners never to pay an up-front fee for Mortgage Counseling Services. State of Illinois law prohibits this practice.
Feel you may have been scammed? Contact 1-888-995-HOPE, toll-free.
DEAN MOSS & DEAN'S TEAM CHICAGO
