Los Angeles Mayor Antonio R. Villaraigosa, Local And National Officials
And Neighborworks America Unite At City Hall To Launch Nationwide Fight Against
Loan Modification Scams
LIVE WEBCAST MONDAY, OCTOBER 26, 2009, 9:00 am - 10:00 am PT
Event kicks off a national campaign to help at-risk homeowners combat new wave of fraudulent activity
now sweeping the nation
About the Webcast
A partnership of local, state and national government agencies, nonprofit organizations and financial institutions will gather on the steps of City Hall to launch a national public education campaign designed to help homeowners protect themselves against loan modification scams, find trusted help and report illegal activity to authorities. To celebrate the launch of "Loan Modification Scam Alert" campaign, the partnership will also designate November as "National Loan Modification Scam Awareness Month."
About the Loan Modification Scam Epidemic in Los Angeles
National foreclosure rates are at an all-time high of 7.97 percent and Los Angeles is the hardest hit with the highest number of homes in foreclosure in the nation. Many LA homeowners are turning to loan modification or foreclosure "rescue" companies for help, often paying them a fee, only to realize they have been scammed. In fact, Attorney General Edmund G. Brown Jr.'s office recently reported receiving more than 2,500 complaints against loan modification consultants and their businesses in 2009 - a dramatic jump from 2008, when less than 200 complaints were filed.
About the Campaign
NeighborWorks® America is working with national, state and local partners on the ground and 235 community-based affiliates to educate homeowners about loan modification scams. Together, we will alert thousands of homeowners in communities at high risk for scam activity through real-life scam stories, fliers, postcards, e-cards, posters, print advertising, local PSAs, events, word of mouth and social media activity.
All national campaign materials urge homeowners who are contacted or deceived by a scam artist to report it immediately by calling 1-888-995-HOPE(4673) or visiting www.LoanScamAlert.org. The hotline and Web site also connect homeowners to free guidance from a HUD-approved counseling agency.
