California homeowners need to beware of phone, mail or personal solicitations from scam artists offering assistance related to the recent national mortgage settlement. Attorney General Kamala D. Harris issued the warning last week as part of National Consumer Protection Week and REALTORS® are passing on the warning to their clients.
The national mortgage settlement reached last month by 49 state attorneys general and the federal government with five of the largest loan servicers - Bank of America/Countrywide, JPMorgan Chase/Washington Mutual, GMAC Mortgage/Ally Financial, Citibank/CitiMortgage and Wells Fargo/Wachovia provides as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government. The agreement settles state and federal findings that the country's five largest loan servicers routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct. The settlement provides benefits to borrowers whose loans are owned by these banks and to many of the borrowers whose loans they service.
Third parties claiming to offer homeowners access to funds under the national mortgage settlement are likely running a scam. Homeowners receiving such solicitations should not provide any personal or financial information and should report the solicitation to the California Department of Justice or file a complained online at http://ag.ca.gov/contact/complaint_form.php?cmplt=CL.
"Scam artists are preying on the vulnerability of desperate homeowners. Their goal is to make a quick profit through fees for services they claim they can do," said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
Californians seeking relief under the state's $18 billion mortgage settlement are advised to follow these tips to avoid falling prey to such scams:
If you think you may be eligible for relief under the national mortgage settlement, call your bank directly. For additional information regarding the mortgage settlement, please visit: http://oag.ca.gov/nationalmortgagesettlement and http://oag.ca.gov/nationalmortgagesettlement/faqs
For free trustworthy advice, homeowners may also call a HUD approved counselor at (888) 995-4673, or call Keep Your Home CA at (888) 954-5337.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.