Los Angeles, CA, (PRWEB) October 26, 2009
Right now in Los Angeles, a partnership of regional, state and national government agencies, nonprofit organizations and monetary institutions gathered at City Hall to launch a national public education campaign designed to aid property owners shield themselves against loan modification scams, locate trusted help and report illegal activity to authorities. This was the first of numerous kickoff events scheduled to announce the “Loan Modification Scam Alert” campaign rollout in main cities across the country.

The national foreclosure rate has reached an all-time higher of 7.97 %, and millions more foreclosures are anticipated in coming years. “As the foreclosure price grows, a lot more and far more home owners are being deceived by scam artists who prey on their fears,” mentioned Eileen Fitzgerald, Chief Operating Officer of NeighborWorks America. “This campaign is primarily based on the belief that expertise is the best defense, which is why the campaign equips home owners with the tools they need to have to reduce their risk and quit scammers in their tracks.”

Los Angeles is a single of numerous metropolitan regions in California to consistently rank amongst cities with the highest foreclosure prices. It has the highest quantity of homes in foreclosure in the nation. “Too many residents in Los Angeles, like homeowners nationwide, are losing thousands of dollars and their homes to scam artists who make massive promises and then do small or nothing to support them save their houses,” said Los Angeles Mayor Antonio Villaraigosa. “Anyone can be a victim and the folks of Los Angeles need to have to know what resources are obtainable to them. They need to have to know that legal aid groups, financial institutions, and HUD-certified counselors are supplying free of charge solutions to any individual seeking aid.”

In April, Mayor Villaraigosa announced a path breaking city ordinance to improve protections for Angelenos against fraudulent mortgage loan modifications. This measure – the 1st of its sort in the United States – fills a crucial gap in the regulation of mortgage consultants and grants rights to homeowners at danger of foreclosure. The ordinance protects homeowners, imposes harsher penalties on scam artists, and informs Angelenos of their rights as residents of Los Angeles.

In addition to remarks from Mayor Villaraigosa and Ms. Fitzgerald of NeighborWorks, the kickoff occasion featured representatives from LA City Council, the nearby faith-based community, the Federal Trade Commission and Los Angeles Neighborhood Housing Solutions, Inc. Also present had been local home owners who shared their individual experiences with loan modification scams to inform other property owners in their community about this activity.

NeighborWorks America will coordinate the nationwide effort by means of its 235 neighborhood-primarily based affiliates and other neighborhood, state and national partner organizations, such as the Department of Housing and Urban Development (HUD), the Federal Trade Commission, the U.S. Department of the Treasury, Fannie Mae, Freddie Mac and the Lawyers’ Committee for Civil Rights Under Law.

With each other, the partners aim to reach thousands of distressed home owners in hundreds of communities at higher danger for fraud activity. The campaign will target all audiences, but its sources are focused sharpest on those groups that have already seen higher levels of scam activity, like seniors, Hispanics, African Americans and Asian Americans.

As portion of the campaign, information, resources and reporting capabilities are now available around the clock at http://www.LoanScamAlert.org and by calling 1-888-995-HOPE (4673). Community groups might also visit the Net website to access campaign components available for download and distribution in their area.

Via real-life scam stories, collateral components, print advertising, neighborhood radio PSAs, events, word of mouth and social media activity, the campaign will educate the public about the warning indicators of a loan modification scam. “Borrowers have to keep away from any person or firm that asks for a charge in advance, guarantees a loan modification or tells you to spend them rather of paying the mortgage. Only a lender can guarantee a loan modification and they do not charge,” mentioned Lori Gay, president and chief executive officer of campaign companion Los Angeles Neighborhood Housing Services, Inc., 1 of the 235 organizations in the NeighborWorks network.

Property owners are also urged to report scam activity at as soon as to the proper authorities through the campaign Internet web site and hotline. “We want to stress how essential it is for folks to find out the indicators of a scam and quickly report any encounter that just does not ring accurate,” mentioned Tom Syta, assistant director of the FTC’s Western Region. “Scammers are out there attempting to take advantage of people in a difficult spot. The campaign is creating it simpler for property owners in distress to fight back, and aid us shut scam artists down.”

The partnership has designated November as “National Loan Modification Scam Awareness Month” and will market a variety of particular events and initiatives throughout the month. In the coming weeks, the campaign will also travel to Miami (Oct. 29) and Columbus (mid-November). For far more information about the campaign go to http://www.LoanScamAlert.org.

A Webcast of the Los Angeles occasion will be available on-demand anytime after noon PST on Oct. 26 at: http://media.xfactorcom.com/loanmodificationscamalert/20091026/.

About NeighborWorks America

NeighborWorks America is a national nonprofit organization designed by Congress to offer monetary support, technical assistance and coaching for neighborhood-based revitalization efforts. NeighborWorks contains a national network of 235 neighborhood-primarily based organizations in 50 states, which strives to develop healthier communities by way of the operate of thousands of residents, enterprise folks, government officials and other partners.

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