It really is a jungle out there. Here's another scam alert. If you know anyone worried about foreclosure, please pass this along.Responding to rising concerns about mortgage modification scams and foreclosure rescue scams, the Office of the Comptroller of the Currency (OCC) issued a Consumer Advisory in late April to help vulnerable homeowners avoid such scams. Con artists are preying on homeowners who are falling behind on their loans in many ways, according to a statement from OCC.
OCC notes some scam artists are trying to take advantage of the federal government’s mortgage modification and foreclosure avoidance programs by claiming to be connected with, or approved by, the government in some way.
The 4-page bulletin, found at http://www.occ.gov/ftp/ADVISORY/2009-1.html, describes common scams, suggests ways consumers can protect themselves, provides information on U.S. government loan programs and free counseling resources (including links), and lists 10 warning signs of a mortgage modification scam.
Common types of scams the Advisory covers include:
- Foreclosure "rescue" and refinance fraud.
- Fake "government" modification programs.
- Leaseback/rent-to-buy schemes.
- Bankruptcy scams.
- Debt-elimination schemes.
Among advice contained in the Advisory is a reminder that consumers who are having difficulty paying their mortgages should always start seeking help by contacting their lender or servicer to discuss options and alternatives to foreclosures.
About OCC
The Office of the Comptroller of the Currency charters, regulates, and supervises all national banks. It also supervises the federal branches and agencies of foreign banks. Headquartered in Washington, D.C., the OCC has four district offices plus an office in London to supervise the international activities of national banks.
The OCC, headed by the Comptroller, was established in 1863 as a bureau of the U.S. Department of the Treasury. Its operations are funded primarily by assessments on national banks.
