Law enforcement is calling a new Florida loan modification scam one of the most sophisticated mortgage scams yet. Borrowers receive an authentic-looking modification offer in the mail. The offer includes detailed information about the borrowers’ loans culled from publicly available foreclosure documents and promises favorable terms, like reduced payments and principal forgiveness. All the borrower needs to do is mail a reinstatement fee of a few thousand dollars to what appears to be a Wells Fargo post office box.
Homeowners, housing counselors, and attorneys should be on the look out for copycat scams in Oregon. Always be wary of unsolicited offers that require the borrower to pay fees up front. When in doubt, consult with a free, HUD-certified housing counselor or an attorney. If you are a victim of a loan modification scam, you can file a complaint with the Oregon Department of Justice.
Read the full article in the Herald-Tribune here.