Watch out for misleading ‘Hope Now’ mortgage scams!
Photo by: NotSoGoodPhotography
In the ongoing financial crisis in the US, it is the home-loan borrowers who have come to be amongst the first and the most harshly affected. Far from getting any respite, they now have to contend with especially greedy and drooling fraudsters. In a new mortgage scam, fraudsters are specifically targeting those having trouble managing their mortgage payments. Beleaguered homeowners are being solicited by fraudsters pretending to be from Hope Now, a government initiative that helps such people in overcoming their mortgage problems.
Hope Now is an alliance of lenders, service providers, and investors to assist borrowers in overcoming loan repayment woes. The association derives its funding from the government. It seeks to help people tide over temporary repayment problems by offering them sound advice through accredited professionals from the industry. The association arranges this by giving counseling services through a toll-free number, a mailing service and a website.
The latest scam is trying to fraud people by impersonating the Hope Now service. Through bogus calls, letters and websites, the scam seeks to harm borrowers in two ways. One way is to offer and then charge people for such advice, as ought to be free. The other is by stealing their identity after getting them to divulge confidential information like Social Security Numbers and bank account numbers.
Fraudsters have set up fake websites, letters, and phone numbers for this purpose. They are sending out mailings identical to ones sent by Hope Now. People are led into believing the letters are from Hope Now because of the use of fake letter-heads of the company. The letter leads harried borrowers into calling up a seemingly toll-free number for advice. Callers end up being charged for a service they thought would be free.
Fraudsters have also created websites that mirror the real Hope Now website. Those landing here in search of counsel are sent to scam sites that actually charge them for the given advice.
Beleaguered borrowers should get in touch with the real Hope Now service to find a way out of their mortgage-related problems. Hope Now operates a toll-free phone number, 1-888-995 HOPE (4673), which is available round the clock for consumers. The advice given here is totally free of charge. They can also seek help at the original Hope Now website. Apart from other information, the site gives a list of certified counseling agencies that are authorized to offer such services.
Source: Reuters
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October 27th, 2008 at 7:44 am
[...] Watch out for misleading ‘Hope Now’ mortgage scams![...]
October 27th, 2008 at 8:00 am
A friend of mine just emailed me one of your articles from a while back. I read that one a few more. Really enjoy your blog. Thanks
October 27th, 2008 at 8:31 am
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October 27th, 2008 at 8:47 am
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December 4th, 2008 at 2:49 am
These scammers came to my house and photographed it then left their badly photocopied flier for the real Hope Now with their fake number penciled in on top.
Hope Now instructed me to contact the police.
December 15th, 2008 at 7:39 pm
has anyone (who is upside down on the value of your home vs. what you owe the mortgage company) experienced or know of anyone’s experience on just walking away from the property?
I can make the mortgage payment but the property has dropped 60% in its value and I will never recoop what I mortgaged for the house.
thanks!