An online scam reporting tool has been launched to help fight against loan modification scams. The U.S. Department of Housing and Urban Development (HUD), in partnership with the Loan Modification Scam Prevention Network, announced the launch of a tool that homeowners facing foreclosure may find valuable
Prevent Loan Scams provides homeowners with a single source to report alleged scammers. Complaints registered online will be added to a national database and forwarded to the appropriate law enforcement agencies for review. According to a statement from HUD, it is estimated that the website will help approximately 50,000 homeowners affected by scams. HUD has also directed its local fair housing and housing counseling grantees to begin reporting alleged loan modification scams on PreventLoanScams.org
“ Homeowners at risk of foreclosure can be easy prey for home loan modification scammers. Often, dishonest individuals lure vulnerable homeowners into foreclosure rescue scams by making false promises. Scammers frequently claim they can lower mortgage payments or stop the foreclosure process. ”
“Troubled homeowners lose time and money when they are tricked by con artists who promise to help but never do. This initiative combines the collective energies of public and private enterprises to strengthen the ability of law enforcement to prosecute scammers and protect homeowners.” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity.
Prevent Loan Scams is a national complaint database created to lead the fight against loan modification scams. Before the launch of this database federal, state and local government agencies were not able to share complaint data with non-profit organizations. The new system should help analysts detect trends across jurisdictional lines and could lead to better law enforcement against scams against homeowners.
The Loan Modification Scam Prevention Network, a national coalition of public and private enterprises, is led by the Lawyers’ Committee for Civil Rights Under Law. Fannie Mae, Freddie Mac, the Homeownership Preservation Foundation, and NeighborWorks America assist the Lawyers’ Committee in leading the coalition’s fight against loan modification scams.
Written by Christine Nyholm
Huliq.com
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