Victims Of Mortgage Scams Warn Other Homeowners

Millions of Americans have been unable to make their mortgage payments due to the economy, leaving some homeowners vulnerable to mortgage scams.

On Monday, U.S. Rep. Elijah Cummings joined victims to help spread the word.

Many scammers falsely claim that they’ll help homeowners lower their mortgage rates or get out of foreclosure, but they hardly ever do, experts said.  Though emails that may look legitimate or phone call from boiler room type setups they prey on desperate homeowners.

Hattie Peartree has owned her home for nearly 17 years, but she said her son’s college tuition and emergency family expenses have made it harder for her to pay the mortgage.  “I’ve been trying to get a lower rate, and I couldn’t.   Someone called, and they were saying and doing everything to appear that it could happen.”

She said she received a call from someone in July who claimed they were with a Florida law firm.   The caller promised her that if she paid them up front, they would help her lower her mortgage rate.

But after spending more than $2,000, the disabled veteran said she got some bad news.  “I received a letter from my lender indicating my mortgage payments just escalated because they weren’t receiving the money I was sending to (the alleged attorney’s) office.”

She said she’s lost all that money and her credit has been affected.   There’s no guarantee she’ll be able keep her home.

Alverta Smith said she is in a similar boat after a mortgage scammer duped her.   She and Peartree joined Cummings and other officials to share their stories.  “I figured everybody should know what’s going on, as far as being scammed, and to watch out for the scammers,”  Smith said.

Experts said to make sure you don’t become a victim, you should first contact your lender and continue to make direct payments to them.   Do not pay any up-front fees, because they are illegal.   They also said you can always call the HOPE hot line at 888-995-HOPE (4673).  “They can refer you to a reputable nonprofit agency that can help you, and most of the time, it’s with no fees charged,” Cummings said.  “I hope everyone gets the help they need.  I hate to see anyone else go through this.  It’s not a good feeling,” Peartree said.