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- Category: Past Issues
PUTNAM — Even though it has been years since the height of the subprime mortgage crisis, many Americans continue to receive fraudulent offers of foreclosure and refinancing assistance, both in the mail and online. The Citizens National Bank and the Independent Community Bankers of America (ICBA) offered some tips on avoiding these financially detrimental loan scams.
“Community banks are here to help our customers with legitimate programs and loan options that are tailored to each individual’s situation,” said David Conrad, president and CEO of The Citizens National Bank. “At The Citizens National Bank, we never take a cookie-cutter approach. That’s the last thing people need when they’re facing financial difficulties.”
Some tips from the ICBA: First, if you are having financial troubles, you should contact your mortgage lender immediately. By taking the direct approach, you will be less likely to be taken in by those pitches offered by unsolicited phone calls, e-mails or letters that appeal to your worst fears.
Consumers should be wary of any company that does the following: Guarantees to stop the foreclosure process—no matter what your circumstances; instructs you to not contact your lender, lawyer or credit or housing counselor; collects a fee before providing you with any services; accepts payment only by cashier’s check or wire transfer; encourages you to lease your home so you can buy it back over time; tells you to make your mortgage payments directly to them, rather than your lender; tells you to transfer your property deed or title to them; offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale; offers to fill out paperwork for you; pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand. If you think you have been the victim of a loan scam, you should contact your state attorney general’s office to file a complaint and learn the next steps to repair any damage incurred as a result of the scam. For additional tips, go to: Housing and Urban Development, Making Home Affordable Program, Federal Deposit Insurance Corporatiom.
Federal Reserve; Federal Trade Commission or the Office of the Comptroller of the Currency.