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A team of NeighborWorks America staff, partners and a representative of network member Neighborhood Housing Services of Los Angeles County toured three Los Angeles communities for a day of outreach to inform the public about loan modification and foreclosure prevention scams that can cost unsuspecting homeowners thousands of lost dollars — and in some cases, their homes.
"During the height of the foreclosure crisis, 75 percent of the families that we counseled had been scammed," said Lori Gay, president and CEO of network member Neighborhood Housing Services of Los Angeles County.
Since the beginning of the foreclosure crisis, it is estimated that homeowners have lost approximately $104 million to scammers alleging they can provide help for those desperate to save their homes.
"Given our lack of affordability in the region and escalating real estate prices, we expect that many more families will be potential scam victims," Gay said. "What we see now is that lenders are not focused on providing loan modifications given an appreciating market when they can get their money back. So many families are losing their homes over small default amounts of $20-$30,000."
The first stop on the tour was the Douglas F. Dollarhide Community Center in Compton, California. There, local seniors (often a prime target of loan scammers) received information on where to get help, as well as an opportunity to report a complaint to a volunteer legal professional skilled in assisting victims.
The next stop was St. Andrew’s Recreation Center in the Gramercy Park area of Los Angeles, where passersby also were offered free lunch from a visiting food truck and other giveaways from local radio station 94.7 The Wave.
A final stop at the Alpine Community Center in the heart of Los Angeles’ Chinatown provided visitors with more free assistance resources, food and information, along with translators fluent in Cantonese, Vietnamese and Spanish.
For Gay and staff at Neighborhood Housing Services of Los Angeles County, she said, "Our job is to help protect and preserve them from foreclosure if we can help, or if the family needs to relocate because they are in an unaffordable situation, we can provide support as well."
The Loan Modification Scam Alert campaign was launched by NeighborWorks America in 2009 to give people the tools they need to protect themselves against loan modification scams, find trusted and often free assistance and report illegal activity to authorities.
"Even with a national improvement in the housing market, we know there are still many homeowners struggling to maintain their home," said Barbara Floyd Jones, senior manager of NeighborWorks national homeownership programs. "That’s why the Loan Modification Scam Alert campaign is still an important mechanism for delivering trusted advice and resources directly to consumers seeking mortgage assistance."
Learn more about the Loan Modification Scam Alert campaign by watching the CNN interview in Spanish with John McCloskey, our vice president of training.
Spanish consumers can find additional resources and information on this website at Consejos sobre vivienda y finanzas.
Sponsoring partners of the tour included the Federal Trade Commission, Lawyers’ Committee for Civil Rights Under Law and Fannie Mae.
"During the height of the foreclosure crisis, 75 percent of the families that we counseled had been scammed," said Lori Gay, president and CEO of network member Neighborhood Housing Services of Los Angeles County.
Since the beginning of the foreclosure crisis, it is estimated that homeowners have lost approximately $104 million to scammers alleging they can provide help for those desperate to save their homes.
Six common scams targeting distressed homeowners
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"Given our lack of affordability in the region and escalating real estate prices, we expect that many more families will be potential scam victims," Gay said. "What we see now is that lenders are not focused on providing loan modifications given an appreciating market when they can get their money back. So many families are losing their homes over small default amounts of $20-$30,000."
The first stop on the tour was the Douglas F. Dollarhide Community Center in Compton, California. There, local seniors (often a prime target of loan scammers) received information on where to get help, as well as an opportunity to report a complaint to a volunteer legal professional skilled in assisting victims.
The next stop was St. Andrew’s Recreation Center in the Gramercy Park area of Los Angeles, where passersby also were offered free lunch from a visiting food truck and other giveaways from local radio station 94.7 The Wave.
A final stop at the Alpine Community Center in the heart of Los Angeles’ Chinatown provided visitors with more free assistance resources, food and information, along with translators fluent in Cantonese, Vietnamese and Spanish.
For Gay and staff at Neighborhood Housing Services of Los Angeles County, she said, "Our job is to help protect and preserve them from foreclosure if we can help, or if the family needs to relocate because they are in an unaffordable situation, we can provide support as well."
The Loan Modification Scam Alert campaign was launched by NeighborWorks America in 2009 to give people the tools they need to protect themselves against loan modification scams, find trusted and often free assistance and report illegal activity to authorities."Even with a national improvement in the housing market, we know there are still many homeowners struggling to maintain their home," said Barbara Floyd Jones, senior manager of NeighborWorks national homeownership programs. "That’s why the Loan Modification Scam Alert campaign is still an important mechanism for delivering trusted advice and resources directly to consumers seeking mortgage assistance."
Learn more about the Loan Modification Scam Alert campaign by watching the CNN interview in Spanish with John McCloskey, our vice president of training.
Spanish consumers can find additional resources and information on this website at Consejos sobre vivienda y finanzas.
Sponsoring partners of the tour included the Federal Trade Commission, Lawyers’ Committee for Civil Rights Under Law and Fannie Mae.
