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Homeownership Preservation Foundation’s Colleen Hernandez on the rise in mortgage scams and how homeowners can avoid them.
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Believe it or not mortgage scams up 60% so far this year -- my next guest says recently launched government programs.
Those are the things to blame Colleen Hernandez.
CEO of the Homeownership Preservation Foundation calling thanks for helping us -- tonight appreciate your time how is it that these government programs invite.
Scams.
I wouldn't say government programs -- -- I would say this scam artists are particularly alert to any headline whether it's a government program or private program.
Any program that says.
There is an opportunity to -- on somebody -- homeowner who is in distress who may be.
Confused about where to turn for help.
So what we see at the Homeownership Preservation Foundation.
As we are the nation's hotline for foreclosure prevention.
Is a whole cadre.
Scam artists who are particularly clever and it tuned to.
What homeowners are going through so they're really tuned in to this confusion and the desperation.
And any headline whether it's AG settlement or OCC consent decree or harp to our hand to any headline it.
Eighteen more -- who backs of those federal programs hoping that.
If you've heard of it maybe you'll think they're the ones offering -- Let's talk a little bit about the increase in these camps it up 60% so far this year and 2012.
I just can't get over that why are they increasing so much now.
Because the headlines and if you read the Paper -- you do of course -- you've read the Paper you listen to the news and the housing solutions as well as the housing problems are featured every single day.
And every single day there's a new moniker which means that if I'm a consumer looking for hope.
If I'm somebody who is unemployed like 70% of the people who call us are.
They they know with -- in fact they're -- they need to.
They need to reach out to somebody for help.
And the scam artists know that they can throw -- a lifeline that sounds kind of like a government program just enough to be plausible.
So they continue to -- every every day the first thing I do.
His Google foreclosure prevention and every day I am amazed at the news thousand forms that the same -- come -- some scum bags have.
Well you know I cover this myself first -- I got to tell yet what I thought was these people operating -- the market margins.
Sending out postcards to people whose names appear in the Paper under the foreclosure activity has finally.
And they send the postcards saying we can help you even if you're behind on your mortgage even if you have no money and they talk them into you.
Not paying their mortgage anymore and giving them Ronnie.
Just ridiculous kinds of things that you only believe if you -- That's exactly right if you're helpless and desperate in your confused.
Whereas that on the flip side a -- there is a lot of good help that's available -- our hotline 888995.
Hope.
Is the nation's hotline for foreclosure prevention.
We are also the nation's anti scam hotline so we get hundreds of calls each week from people who report the kinds of scams that you it it they.
They look implausible but as a matter of fact people are filing for every day.
So.
If not so interesting about this is debt.
He that you would think that maybe it's people without a lot of money people without means there who fall for -- and in fact what you find is that -- people up and down the income spectrum.
Who get -- -- -- is situation.
Where they're desperate and they're scared and then they become somehow willing to listen to these people these.
-- -- -- That's exactly right when they knew -- phenomena in that we've seen is the forensic audit.
This offered by so called lawyers or we've seen a thing called the Joyner lawsuits were they say join with -- -- join with us and we'll sue your bank.
And it looks like it's a lawyer sometimes it's -- A firm of marketers back to buy one lawyer.
It looks to a middle class person like I'm in serious trouble and I want serious legal help and in these guys are hard they're gonna be my choice.
Rather than a non profit when infect the nonprofits like -- have.
Connections to inside connections to the banks that can get people.
The best deal this also makes sense to call your attorney and illegitimate attorney -- real attorney who might be very -- -- -- help.
If you know that that person is legitimate but if their slick advertising.
If they want money up front if they tell you to stop paying your mortgage payment or the red flag that is the biggest one for me is.
We guarantee you that we can lower your payment we guarantee you that you can we can save your house.
And it's sort of like if you went into the doctor and without even examining you the doctor said I guarantee you I'll make you well of course they can't make that promise.
But these guys do it all day everyday they make guarantees because people are desperate and they want -- they want to believe that.
Yeah and I think and they got enough Clara make -- it is before you sign up for a -- thanks for coming on the show tonight we really appreciate your time.
Thank you --
