Mortgage scams still out there

As consumers hear about new ways to get loan modifications, they should avoid the old mortgage scams, too.

Consumers should be wary of anyone who calls you out of the blue and offers some sort of rescue plan, according to Kathy Williams, a housing official in Oakland County, Mich. And she warned that more scam artists could be calling.

The National Federation for Credit Counseling noted recently that the confusion surrounding the federal government’s “Making Home Affordable” plan may play into future scams.

Scam artists are busy sifting through public records to find homeowners in distress. Others put ads on the Internet or street corner.

Many scam artists could try to con troubled homeowners into thinking that their service is part of the government’s new program. It’s not. For details about the new program, go to www.financialstability.gov. This site continues to be updated.

Homeowners do not need to pay anyone to tap into the latest housing program.

To find out if you qualify, phone the company that sends you a mortgage statement each month and ask if you have a Fannie Mae or Freddie Mac mortgage. Or see www.fanniemae.com and www.freddiemac.com. Or call: (800) 732-6643 for Fannie and (800) 373-3343 for Freddie.

Some scam artists are offering to buy the home from you. They offer to pay off the lender, promise to lease the house back to you and say you could buy the house back once you’re on a better financial footing.

While that sounds good, you still lose your home because the original lender doesn’t get paid. The scammers keep your rent money, and the house ends up in foreclosure anyway.

Do not hand over $1,000 or $2,000 up front to someone who offers to work as a mortgage counselor and guarantees a loan modification.

The counselor does not decide who can get a loan modification, Williams notes, the lender does. So you may lose that money and the house.

In general, it’s best to avoid any unsolicited offer for mortgage help, according to Ken Ross, commissioner of the Michigan Office of Financial and Insurance Regulation.

Robin Stout Migala, consumer outreach manager for Freddie Mac, said consumers should get help by calling a federally approved nonprofit counseling agency, whose services are free. To find free, nonprofit housing counselors, go to www.hud.gov.

Even if you don’t qualify for the latest housing program, you can still work with your lender. To get any sort of loan modification, consumers must have their mortgage loan number, name of mortgage servicer and recent mortgage statement. You need your most current pay stubs, your bank statements, with account balances and account numbers, and information on other expenses and debts, such as student loans, car leases and credit card debt.

Speak to someone in the loss-mitigation area, not the collections section. Be ready to explain your financial hardship.

XSusan Tompor is the personal finance columnist for the Detroit Free Press. She can be reached at stompor@freepress.com.