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HUD fights loan modification scams

Posted by: VHFA on March 1, 2010 - 9:58am

preventscamsLast Friday, the U.S. Department of Housing and Urban Development (HUD) and the Loan Modification Scam Prevention Network launched PreventLoanScams.org, a site where homeowners can report alleged scams.

"Homeowners at risk of foreclosure can be easy prey for home loan modification scammers. Troubled homeowners lose time and money when they are tricked by con artists who promise to help but never do,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity.

“This initiative combines the collective energies of public and private enterprises to strengthen the ability of law enforcement to prosecute scammers and protect homeowners."

Complaints filed online will be added to a national database and forwarded to the appropriate law enforcement agencies for review. The Network estimates the Web site will assist approximately 50,000 homeowners.

The Loan Modification Scam Prevention Network is a national coalition of public and private enterprises including Fannie Mae, Freddie Mac, the Homeownership Preservation Foundation, and NeighborWorks America led by the Lawyers’ Committee for Civil Rights Under Law.