The Dotte

With headlines touting the $25 billion dollar Mortgage Servicing Settlement announced on February 9, 2012 through the combined efforts of the U.S. Department of Justice, HUD, and the Treasury Department; there are concerns that some consumers might find a new twist to loan or foreclosure rescue scams. Community Housing of Wyandotte County (CHWC), NeighborWorks America, and our partners want to remind consumers to be cautious of potential scams that may be created from this settlement.

“The Mortgage Servicing Settlement announced yesterday is a great step towards repairing the damage done to the thousands of homeowners who may have lost their homes unnecessarily,” says Donny Smith, Executive Director of CHWC. “However, a new potential problem has also been created which is the opportunity for new loan scams. We have often told consumers to be wary of any offers not requested or initiated by the consumer, but in the case of the independent foreclosure review this is not the situation. Eligible consumers were mailed directly, informing them of the assistance or relief created by this settlement.”

To combat the ability of new scams, CHWC encourages consumers to take advantage of free counseling and be wary of any firm that asks for an up-front fee. Warning signs of a loan modification scam are:

Asks for fees in advance.
Guarantees that they’ll stop a foreclosure or get your loan modified.
Tells you to stop paying your mortgage company and to pay them instead

CHWC advises consumers to contact the Kansas Attorney General, a HUD certified counseling agency, or the national Foreclosure Hotline if they need more information about this settlement or potential scams. Other Important contact information for consumers:

Call 888-995-HOPE to Speak with a HUD Approved Housing Counselor, such as CHWC 913.342.7580 Call the Kansas Attorney General Consumer Protection Hotline at 1-800-432-2310
For additional information and answers to basic questions about the review process, visit www.IndependentForeclosureReview.com.

To report a loan scam at any time, call 1-888-995-HOPE. For more information about the Loan Scam Alert campaign, visit www.LoanScamAlert.org.

Borrowers or former homeowners seeking more information about the qualifications for relief from this settlement may also visit http://www.nationalmortgagesettlement.com/ for more information.

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