Coalition Of Advocates, Gov't Agencies, Law Enforcement Launch Website Targeting Scams Involving Loan Mods, Sale Leasebacks, Phony Re-Fi Rackets, Etc.

The Sarasota Herald Tribune reports:

• This month, a coalition of government agencies, law enforcement offices and advocates known as the Loan Modification Scam Prevention Network(1) is attempting to push back against the fraudsters by launching a Web site called preventloanscams.org.

• "Homeowners at risk of foreclosure can be easy prey for home loan-modification scammers," said John Trasvina, assistant secretary for fair housing and equal opportunity at the U.S. Department of Housing and Urban Development, in a statement. "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."(2)

For more, see New Web site aims to track fraud in loan modifications.

(1) According to its website, the lead organizations of the effort include Fannie Mae, Freddie Mac, the Lawyers' Committee for Civil Rights Under Law (Lawyers' Committee) and NeighborWorks America, among others, with representatives from key governmental agencies, such as the Federal Trade Commission, the U.S. Department of Housing and Urban Development (HUD), U.S. Department of Justice, the U.S. Treasury Department, the Federal Bureau of Investigation, and state Attorneys General offices, as well as leading non-profit organizations from across the country.

This new, broad coalition includes a two-part response. First, NeighborWorks is leading a national media and outreach campaign to educate homeowners and the public on potential scams. (Please visit the NeighborWorks' website on this effort http://www.loanscamalert.org/.)

Second, the Lawyers' Committee is leading an effort to increase reporting and prosecution of alleged scammers to support ongoing enforcement efforts at the federal, state and local levels.

(2) According to its website, the mission of the Loan Modification Scam Prevention Network is to target the unscrupulous and sometimes criminal third-party scammers, con-artists, and thieves who target financially distressed homeowners. Some of these operators, individuals and companies posing as "loan modification specialists," are the very people who previously peddled subprime loans. While waiting for the promised relief, homeowners not only lose their money but often fall deeper into default and lose valuable time. Among the various scams employed by the alleged "rescuers" are:

• phantom foreclosure counseling,
• lease-back or repurchase scams,
• fraudulent refinance,
• fraudulent loan modification,
• bankruptcy foreclosure, and
• reverse mortgage fraud.