A mortgage fraud alert was recently issued to the armed services community to combat scams targeted at homeowners seeking to apply for mortgage assistance through the Home Affordable Modification Program.
The U.S. Department of Treasury, the Consumer Financial Protection Bureau and the Office of the Special Inspector General for the Troubled Asset Relief Program issued the fraud alert for military personnel and their families.
The fraud alert is designed to raise awareness of mortgage modification scams that target struggling homeowners as well as those serving in the armed forces struggling to meet their monthly payments.
As part of the alert, a list of resources is made available to members of the armed services community. There is also information on how military personnel can receive assistance with any mortgage-related questions and how to report fraud.
Notable HAMP mortgage modification scams include the unofficial use of program names or logos of government agencies, nonprofit organizations and lenders; the advertising of a very high success rate in achieving modifications; and the guarantee of a successful modification in exchange for an upfront fee.
In reality,
“Members of the armed services community often face unique financial challenges and are at particular risk for this type of scam,” said Christy Romero, special inspector general at SIGTARP. “We want to empower servicemembers and their families with information so that they can easily recognize and avoid these scams and also provide them with resources on where to turn for additional information and assistance.”
