(WOIO) -
Foreclosure
prevention information & Restoring
stability
888-404-4674
https://www.restoringstability.org/
Restoring
Stability: A Save the Dream Ohio Initiative, administered by the
Ohio Housing Finance Agency, aims to help an estimated 53,000 families who are
at high risk of default or foreclosure.
Restoring
Stability: offers
four programs to help homeowners dealing with financial hardship. This web site
is the fastest way for families to submit an application for assistance.
FORECLOSURE
PREVENTION PROGRAM
216-443-7461
http://www.gcbl.org/building/housing/cuyahoga-countys-foreclosure-prevention-program
The $3 million Foreclosure Prevention
Program is working with United Way's First Call for Help hotline. People who
dial 2-1-1 can seek advice with their credit, mortgage, possible refinancing, a
payment default situation or foreclosure with staff from one of nine nonprofit
organizations. The program is also conducting financial education outreach
programs and a marketing campaign focused on a 'Don't Borrow Trouble' theme.
ESOP: EMPOWERING AND STRENGTHENING OHIO'S PEOPLE
(216) 361-0718
http://www.esop-cleveland.org/
ESOP works with homeowners and their lenders to obtain
affordable resolutions that preserve home ownership. ESOP uses a Hot Spot Card
process, through which homeowners complete documentation and provide financial
information relevant to their case, and have the opportunity to make
suggestions to the lender for a resolution.
HOUSING
ADVOCATES, INC.
216-431-7400
www.housingadvocates inc.com
The Housing Advocates, Inc., (HAI) has a 31 -year history of
fighting for fair and affordable housing. Its mission is the promotion of
equal housing opportunities, tenant rights, and affordable housing.
SAVE THE DREAM OHIO
800-282-0515
www.savethedream.ohio.gov
LEGAL
AID SOCIETY OF CLEVELAND
216-687-1900
http://www.lasclev.org
To
secure justice and resolve fundamental problems for those who are low income
and vulnerable by providing high quality legal services and working for
systemic solutions
Foreclosure Rescue
Scams:
Another Potential Stress for Homeowners in Distress
The
possibility of losing your home to foreclosure can be terrifying. The reality
that scam artists are preying on the vulnerability of desperate homeowners is
equally frightening. Many so-called foreclosure rescue companies or foreclosure
assistance firms claim they can help you save your home. Some are brazen enough
to offer a money-back guarantee. Unfortunately, once most of these foreclosure
fraudsters take your money, they leave you much the worse for wear.
Fraudulent
foreclosure "rescue" professionals use half truths and outright lies to sell
services that promise relief and then fail to deliver. Their goal is to make a
quick profit through fees or mortgage payments they collect from you, but do
not pass on to the lender. Sometimes, they assume ownership of your property by
deceiving you, the homeowner. Then, when it's too late to save your home, they
take the property or siphon off the equity. You've lost your home to
foreclosure despite your best intentions.
If
you think you may be facing foreclosure, the Federal Trade Commission (FTC),
the nation's consumer protection agency, wants you to know how to recognize a
foreclosure rescue scam. And even if the foreclosure process has already begun,
the FTC and its law enforcement partners want you to know that legitimate options
are available to help you save your home.
How the Scams Work
Foreclosure
rescue firms use a variety of tactics to find homeowners in distress: Some sift
through public foreclosure notices in newspapers and on the Internet or through
public files at local government offices, and then send personalized letters to
homeowners. Others take a broader approach through ads on the Internet, on
television, or in the newspaper, posters on telephone poles, median strips and
at bus stops, or flyers or business cards at your front door. The scam artists
use simple and straight-forward messages, like:
"Stop
Foreclosure Now!"
"We
guarantee to stop your foreclosure."
"Keep
Your Home. We know your home is scheduled to be sold. No Problem!"
"We have
special relationships within many banks that can speed up case approvals."
"We
Can Save Your Home. Guaranteed. Free Consultation"
"We
stop foreclosures everyday. Our team of professionals can stop yours this
week!"
Once they
have your attention, they use a variety of tactics to get your money:
Phony Counseling or Phantom Help
The
scam artist tells you that he can negotiate a deal with your lender to save
your house if you pay a fee first. You may be told not to contact your lender,
lawyer, or credit counselor, and to let the scam artist handle all the details.
Once you pay the fee, the scam artist takes off with your money.
Sometimes,
the scam artist insists that you make all mortgage payments directly to him
while he negotiates with the lender. In this instance, the scammer may collect
a few months of payments before disappearing.
Bait-and-Switch
You
think you're signing documents for a new loan to make your existing mortgage
current. This is a trick: you've signed documents that surrender the title of
your house to the scam artist in exchange for a "rescue" loan.
Rent-to-Buy Scheme
You're
told to surrender the title as part of a deal that allows you to remain in your
home as a renter, and to buy it back during the next few years. You may be told
that surrendering the title will permit a borrower with a better credit rating
to secure new financing – and prevent the loss of the home. But the terms of
these deals usually are so burdensome that buying back your home becomes impossible.
You lose the home, and the scam artist walks off with all or most of your
home's equity. Worse yet, when the new borrower defaults on the loan, you're
evicted.
In a
variation, the scam artist raises the rent over time to the point that the
former homeowner can't afford it. After missing several rent payments, the
renter – the former homeowner – is evicted, leaving the "rescuer" free to sell
the house.
In a
similar equity-skimming situation, the scam artist offers to find a buyer for
your home, but only if you sign over the deed and move out. The scam artist
promises to pay you a portion of the profit when the home sells. Once you
transfer the deed, the scam artist simply rents out the home and pockets the
proceeds while your lender proceeds with the foreclosure. In the end, you lose
your home – and you're still responsible for the unpaid mortgage. That's
because transferring the deed does nothing to transfer your mortgage
obligation.
Fraudulent
foreclosure "rescue" professionals use half truths and outright lies to sell
services that promise relief and then fail to deliver.
Bankruptcy Foreclosure
The
scam artist may promise to negotiate with your lender or to get refinancing on
your behalf if you pay a fee up front. Instead of contacting your lender or
refinancing your loan, though, the scam artist pockets the fee and files a
bankruptcy case in your name – sometimes without your knowledge.
A
bankruptcy filing often stops a home foreclosure, but only temporarily. What's
more, the bankruptcy process is complicated, expensive, and unforgiving. For
example, if you fail to attend the first meeting with the creditors, the
bankruptcy judge will dismiss the case and the foreclosure proceedings will
continue.
If
this happens, you could lose the money you paid to the scam artist as well as
your home. Worse yet, a bankruptcy stays on your credit report for 10 years,
and can make it difficult to obtain credit, buy a home, get life insurance, or
sometimes get a job.
Where to Find Legitimate Help
If
you're having trouble paying your mortgage or you have gotten a foreclosure
notice, contact your lender immediately. You may be able to negotiate a new
repayment schedule. Remember that lenders generally don't want to foreclose; it
costs them money.
Other
foreclosure prevention options, including reinstatement and forbearance, are
explained in Mortgage Payments Sending You Reeling? Here's What to Do, a
publication from the FTC. Find it at www.ftc.gov.
You
also may contact a credit counselor through the Homeownership Preservation
Foundation (HPF), a nonprofit organization that operates the national 24/7
toll-free hotline (1.888.995.HOPE) with free, bilingual, personalized
assistance to help at-risk homeowners avoid foreclosure. HPF is a member of the
HOPE NOW Alliance of mortgage servicers, mortgage market participants and
counselors. More information about HOPE NOW is at www.hopenow.com.
Red Flags
If
you're looking for foreclosure prevention help, avoid any business that:
- guarantees to stop the
foreclosure process – no matter what your circumstances
- instructs you not to contact
your lender, lawyer, or credit or housing counselor
- collects a fee before providing
you with any services
- accepts payment only by
cashier's check or wire transfer
- encourages you to lease your
home so you can buy it back over time
- tells you to make your mortgage
payments directly to it, rather than your lender
- tells you to transfer your
property deed or title to it
- offers to buy your house for
cash at a fixed price that is not set by the housing market at the time of
sale
- offers to fill out paperwork
for you
- pressures you to sign paperwork
you haven't had a chance to read thoroughly or that you don't understand.
If
you're having trouble paying your mortgage or you have gotten a foreclosure
notice, contact your lender immediately.
Report Fraud
If
you think you've been a victim of foreclosure fraud, contact:
- Federal Trade Commission
- Your state Attorney General
- Your local Better Business Bureau
For More Information
To
learn more about mortgages and other credit-related issues, visit www.ftc.gov/credit and MyMoney.gov, the
U.S. government's portal to financial education.
Copyright 2012 WOIO. All rights reserved.
