The scammers are out in force. In an article in yesterday’s LA Times, it was reported that mortgage scammers have taken their nasty business to a new level. Addressing letters to homeowners facing default, the thieves present themselves as the mortgage company and offer to modify the mortgage for a “fee,” and then later begin accepting the “modified” loan payments.
California, especially hard hit by foreclosures, has been a prime target of these crooks. During the past 5 years the FBI has reported an increase of 400% in mortgage rescue scams. Borrowers are warned to confirm with their lender that any offers are legitimate, and should be especially cautious of offers received in the mail or over the phone. Before signing any documents or forwarding payments, homeowners should contact their lender at the phone number listed on their payment coupon to verify the offer.
Borrowers should also report any such fraudulent solicitations to the local police.
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