Home > Avid Law Center, Mortgage Scams > Scam Alert: Feds target HAMP scammers bilking owners

Scam Alert: Feds target HAMP scammers bilking owners

Earlier this month, a multi-agency task force was announced designed specifically to deter scam artists preying on homeowners looking for help under the Home Affordable Modification Program (HAMP).

The task force will operate under the Department of the Treasury, the new Consumer Financial Protection Bureau (CFBP) and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP.)

According to the New York Post, the latest scams tied to the Home Affordable Modification Program, were lead by mortgage servicers, which manage loans day to day. They have collected a total of $666 million from the government for participating in HAMP.

From the New York Post article:

The typical fraud works like this. A scam artist advertises online, pretending to be affiliated with the government. The scammers charge an average of $4,500 upfront, do no work, then skip out with the cash. Some borrowers are even losing their homes as a result of scammers’ advice to ignore foreclosure notices.

We at Avid Law Center think it’s vital for homeowners to know how these scams work and make sure they do their research when hiring assistance with the loan modification process.

 

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