SOURCE: NeighborWorks America
Don't Fall Victim To A Home Loan Modification Scam
SCRIPT: Newsbreak, I'm Brian Osuch. Loan modification scams take many forms, from mimicking government foreclosure-prevention programs to stripping homeowners of equity or of the home itself. Barbara Floyd Jones is with NeighborWorks America and says be on the lookout for these red flags.
CUT: (Floyd Jones) The number one sign of a scam is if they ask for money before the modification is granted. Secondly, if they're asking you to sign documentation that you're not sure or unaware of. And third, if they tell you to stop paying the lender and to send the payment directly to them.
SCRIPT: And what should homeowners do if they feel they're getting scammed?
CUT: (Floyd Jones) First, report that information and you can report it through the Hope Hotline at 1-888-995-HOPE. You can also visit the campaign website at LoanScamAlert.org to report a scam.
SCRIPT: Floyd Jones says the number of victims falling for home modification scams increases every day and they've already received more than 45,000 complaints. For more information on how to protect yourself from scammers, visit LoanScamAlert.org. That's Newsbreak from NeighborWorks America.