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Para los clientes de habla hispana, pueden utilizar el traductor de Google (arriba a la derecha) o pueden visitar la página del Minnesota Homeownership Center en español:

http://hocmn.org/es/index.cfm

 

Warning Against Foreclosure Scams in the Latino Community

 

The Minnesota Homeownership Center is working to raise awareness of foreclosure rescue scams in the Twin Cities’ Latino community throughout the month of August with a new paid media campaign.  The core message is simple: homeowners in danger of foreclosure should be wary of scam artists who claim to offer help but charge up-front fees and often make the situation worse.

“During the housing boom subprime lenders were disproportionately preying on Latino families, among other demographics, and now these families are at a disproportionately great risk of foreclosure,” said Ed Nelson, Marketing and Communications Manager for the Minnesota Homeownership Center. “Now these same unscrupulous people are claiming to offer foreclosure prevention help. With this awareness campaign, we are working to ensure that Latino homeowners in danger of foreclosure are on the lookout for people who promise a solution but instead make a bad situation worse.”

 In particular, the Minnesota Homeownership Center is encouraging homeowners to be on the look out for three common types of foreclosure rescue scams:

 

1. Foreclosure Consultant.  Individuals or companies target homeowners already in default and charge an up-front fee for advice, or to negotiate with a lender on behalf of the homeowner. Once the fee is received, these companies are often never heard from again.
2. Mortgage Modification Scam. Companies using official-sounding names and logos target homeowners (often before they are in default) to offer assistance securing a mortgage modification in exchange for up-front fees.
3. Forensic Loan Audit. A company or individual will sell “auditing” services on a mortgage with the hope of finding a state or federal law violated by the terms of the mortgage agreement. These auditors claim that such violations will deem a mortgage null, thus freeing the homeowner to walk away from the home without damage to credit. Again, these groups charge up-front fees.

 

There are many types of foreclosure rescue scams, but all share one common thread: they prey on homeowners in danger of foreclosure and charge hefty up-front fees, only to disappear and leave the homeowner in even worse shape.

 The Minnesota Homeownership Center is encouraging all homeowners to learn the answers to three questions when considering outside help to prevent a foreclosure:

• Does the organization charge a fee at any point for their work?
• Does the organization benefit financially from the course of action that they are recommending?
• Has the organization registered with the Minnesota Department of Commerce as an approved loan modification organization?

 

The Look Before You Leap campaign will carry this message to Latino households in Minneapolis and St. Paul through direct mail (postcard mailing), bus shelter ads in select neighborhoods, and radio and print advertising in Hispanic media outlets.  

Homeowners are also able to report scams and request help avoiding foreclosure through this website.

 The Latino-specific outreach effort is part of a broader, ongoing effort to raise awareness of foreclosure rescue scams in communities across Minnesota. The most recent effort is made possible through a public awareness grant from the U.S. Department of Housing and Urban Development (HUD).

The Minnesota Homeownership Center is leading this public awareness effort as part of its role as the coordinator of Minnesota’s free Homeowners Advisors Network. In this role, the Center works with a network of more than 30 nonprofits across the state to offer free foreclosure and credit counseling to all Minnesotans in danger of foreclosure. The network also offers credit counseling and first time homebuyer education courses as part of its mission to promote and support successful and sustainable homeownership statewide.

For more information about counseling, or to connect with an Advisor in your community, visit our help page, here, or call (866) 462-6466. Free counseling help is available in both English and Spanish.

 

MN Dept of Commerce Stops Another Scammer

A Bloomington firm that offered mortgage modification "help" to homeowners that were struggling with their mortgage payments lost its license this week after allegations of charging illegal up-front fees.

Check out the full story here: http://www.twincities.com/business/ci_19641415

 

And remember... if you're struggling with mortgage payments... DON'T BECOME A VICTIM.  Contact the Minnesota Homeownership Center TODAY for the facts.  www.hocmn.org.

 

 

 

Help Us Help Homeowners

The Look Before You Leap campaign has produced a new brochure-sized flyer aimed at helping consumers recognize foreclosure rescue scams, and it is available to our campaign partners free of charge.

FTC Rule Aims to Stop Foreclosure Rescue Scams

Under a new Federal Trade Commission (FTC) rule that goes into effect on December 29, 2010, many common tricks of foreclosure rescue scams will now be illegal across the United States. In particular, under this Rule companies offering mortgage modification services must disclose:

Star Tribune Editorial Supports Campaign Principles

Homeowners should not pay for help avoiding foreclosure or securing a loan modification. That’s the message of Look Before You Leap, and it’s the message of a July 2 Star Tribune editorial supporting the campaign. With the number of scams reported to federal authorities booming from 1 in 2008 to nearly 8,000 last year, the campaign is working to curb this groundswell of scams and to protect homeowners in Minnesota. To read the full editorial, click here.

Partnerships Are Expanding to Help Homeowners

Momentum continues to build in support of the Look Before You Leap campaign and efforts to stop foreclosure scams in Minnesota. Today the campaign announced its 70th partner that has committed to educating its members/customers about the dangers of such scams: the Minnesota Credit Union Association.

Look before leaping to protect against mortgage scams

The following editorial appeared in the June 30, 2010 Pioneer Press:

Look before leaping to protect against mortgage scams

Homeowners struggling with the loss of a job, a soaring mortgage payment, declining home value — or all of the above — are at risk for foreclosure. The nation, the state and our community haven't seen this kind of housing stress since the 1930s. Not every mortgage can be 'fixed' short of losing the home. But some can.

Look Before You Leap: Out to quell foreclosure-related scam

The following article appeared in today's Star Tribune.

Look Before You Leap: Out to quell foreclosure-related scam

The Look Before You Leap campaign warns of illegitimate loan modification companies. There will be an event at 10:30 a.m. Tuesday on the East Side of St. Paul, one of the areas hardest hit by foreclosure, featuring homeowners who have agreed to share their horror stories.

Stopping Foreclosure Rescue Scams: Look Before You Leap Launches Today

At a community event today in St. Paul’s Payne-Phalen neighborhood, the Minnesota Home Ownership Center launched a new public education and outreach campaign. “Look Before You Leap” is designed to help homeowners identify and avoid loan modification scams in an effort to curb the state’s unprecedented foreclosure rate. The campaign is supported by more than 50 business, nonprofit and local government partners across Minnesota.

Read the entire press release below.

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