Tips On Avoiding Mortgage Fraud And Scams (NAPSA)—Mortgage fraud artists are cashing in on therising tide of distressed borrowers by camouflaging their scams to look like legitimate efforts. In particular, fraudsters are dressing up their Web sites and sales pitches with patriotic imagery so consumerswill confuse them with Making Home Affordable, a federal effort the Obama administration launched to help underwater or delinquent homeowners refinance or modify their mortgages. But instead of helping, these fraud artists are likely to charge up-front fees for services that are free elsewhere or, worse, talk own- ers into signing their deeds away for an empty promise to fix their mortgage problems. Fortunately, borrowers can learn to spot and avoid these frauds by going to the Making Home Affordable Web site— www. MakingHomeAffordable.gov. This official government Website also provides detailed information on how to qualify for a Making Home Affordable mortgagerefinance or modification. Mortgage investor Freddie Mac, a key supporter of Making Home Affordable, has been investigating and prosecuting mortgage fraud for 20 years. Here’s what Freddie Mac fraud experts warn borrowers to bewareof: Empty promises and documents with errors or blank spaces. e Anyone who promises to stop a foreclosure for an up-front fee, refinance your troubles away even if you have bad credit, or offers next-day approvals based on prepayments or up-front fees. Terms that change at the last minute and “deals” that require you to sign your deed to an investor who “promises” to rent your house back to you. Freddie Mac’s Christina DiazMalone advises homeownersto visit the official government Web site—www.MakingHome Affordable.gov—and beware of phony agencies. Phony agencies charging high fees for services you can getforLittle or no charge through HUDapproved nonprofit agencies. You can find an agency near you at www.hud.gov. Christina Diaz-Malone, Fred- die Mac’s senior director of industry relations, also advises troubled borrowers to read and understand every documentbefore signing. “Never sign documents with errors or blank spaces that can be filled in later,” says Ms. DiazMalone. “If you don’t understand a document, it is your right and duty to seek advice from a trusted lawyeror credit counselor.” She also encourages homeowners to get promises in writing and keep copiesof all signed contracts. Suspicious activity, she says, should be reported to the Federal Trade Commission and to your state and local consumer protection agencies. For more tips on avoiding fraud and a detailed description of the program, visit the Web site at www.MakingHomeAffordable.gov.
