News Release

February 17, 2010

Contact: Linda Skelton, 410-962-5292, lskelton@nw.org
Erin Angell Collins, 202-220-6317, ecollins@nw.org

U.S. Senator Mikulski and NeighborWorks America Unite to Fight Loan Modification Scams
Campaign Offers At-Risk Homeowners Free Resources to Recognize Scams,
Report Them and Find the Help They Need

Senator Mikulski speaks at a news conference launching the Loan Scam Alert Campaign in Maryland. NeighborWorks COO Eileen Fitzgerald is in the background.

Seat Pleasant, Md. – Today U.S. Senator Barbara A. Mikulski, NeighborWorks America COO Eileen Fitzgerald and other federal, state, and local government agencies, nonprofit organizations and financial institutions launched the national “Loan Modification Scam Alert” campaign at the Seat Pleasant Activity Center in Prince George’s County, Maryland.  The “Loan Modification Scam Alert” campaign provides Maryland residents facing the possibility of foreclosure with vital information so they can guard against loan modification scams, find trusted help, and report illegal activity to trusted authorities. 

The national foreclosure rate has reached an all-time high of 8.85 percent, and Prince George’s County is one of the hardest hit areas in Maryland, where there is one foreclosure filing for every 285 households.  Many Prince George’s County homeowners are turning to loan modification or foreclosure “rescue” companies for help, often paying them a fee, only to realize they have been scammed.

“These are the toughest of times. People are anxious about their jobs, bills, and how to keep their homes. But where there is need, there is greed – and where there’s greed, there’s scam and scum,” said Senator Barbara A. Mikulski (D-Md.). “Maryland has been hit hard by slick scammers and schemers preying on families in a tight spot. That’s why I am so proud to join NeighborWorks in announcing the Loan Modification Scam Alert campaign. Today our message is clear: where there is scam and scum, we’ll go after it. Help for homeowners is just a phone call away.”

“Too many residents in Prince George’s County and the state of Maryland are losing thousands of dollars and their homes to scam artists who make big promises and then do little or nothing to help them save their homes,” said Eileen Fitzgerald, Chief Operating Officer of NeighborWorks America. “Anyone can be a victim and the people of Maryland need to know what resources are available to them. Knowledge is the best defense, which is why we’re equipping homeowners with the tools they need to minimize their risk and stop scammers in their tracks.”

1. To steer clear of loan modification scam artists, homeowners must know the signs of a loan modification scam, which include:

1. 2. A company/person that asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure.
   
   
2. 3. A company/person that guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise they will try their very best to help you.
   
   
3. 4. A company/person that advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. The minute you have trouble making your monthly payment, contact your mortgage lender.

These and other signs can be found on the Loan Modification Scam Alert campaign web site – www.LoanScamAlert.org – along with information on how to report a loan modification scam activity and where homeowners can find real help, free of charge, from HUD-approved nonprofit housing counseling agencies.  

About the Campaign
NeighborWorks America is coordinating the “Loan Modification Scam Alert” campaign nationwide through its 235 community-based affiliates and other local, state and national partner organizations, including the Department of Housing and Urban Development (HUD), the Federal Trade Commission, the U.S. Department of the Treasury, Fannie Mae, Freddie Mac and the Lawyers’ Committee for Civil Rights Under Law. For more information about the campaign, visit www.LoanScamAlert.org.   

All national campaign materials urge homeowners who are contacted or deceived by a scam artist to report it immediately by calling 1-888-995-HOPE(4673) or visiting www.LoanScamAlert.org. The hotline and Web site also connect homeowners to free guidance from a HUD-approved counseling agency..

About NeighborWorks America
NeighborWorks America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. Since 1991, we have assisted nearly 1.2 million low- to moderate-income families with their housing needs. Much of our success is achieved through our support of the NeighborWorks network ― more than 235 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $15 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals.