Swindlers, re-fi companies prey on desperate consumers
SALEM, Ore. - The Oregon attorney general's office is warning homeowners facing foreclosure about offers to modify their mortgage loan for a fee.
State officials say some companies charge fees for services that homeowners can get for free by visiting a nonprofit counselor or by talking directly with their lender.
Loan modification companies have been targeting homeowners in Oregon through fliers, direct mail and phone calls.
Typically, the companies charge a fee to negotiate a change in the borrower's loan, such as deferred payments.
But most homeowners can get the same result for no charge from a nonprofit counselor or by dealing directly with their lender.
Additionally, scammers telling consumers they can get "free" stimulus money are multiplying online. Most are geared to collect personal and financial information which can typcially lead to identity theft.
Spam and spoof e-mails that appear to be from the government are the typical way the scammers first draw in their victims.
Government officials are reminding people that local, state and federal governements will never contact you via e-mail unless you have opted into a bulletin board or government service.
Homeowners who believe they have been taken advantage of by a loan modification company should file a complaint with the Attorney General’s Office. Contact the Attorney General’s consumer hotline at 1-877-877-9392 or online at www.doj.state.or.us. Written complaints can be sent to Financial Fraud/Consumer Protection Section, 1162 Court St. N.E., Salem, OR 97301-4096.
To find a nonprofit foreclosure counselor in your area, go to http://www.cbs.state.or.us/dfcs/ml/foreclosure/counselors.html
For residents of Washington state: http://www.homeownership.wa.gov or call 1-800-SAFENET.
For more information about the options available under the Homeowner Affordability and Stability Plan, go to http://www.financialstability.gov/makinghomeaffordable/index.html
To find a government-certified counseling agency, call the Department of Housing and Urban Development at 800-569-4287, or go to its Web site at http://www.hud.gov/foreclosure/
- The Associated Press contributed to this report