Campaign aimed at preventing foreclosure fraud

Tuesday, Nov. 24, 2009 | 7:47 p.m.

Harry Reid

Catherine Cortez Masto

State and federal officials gathered Tuesday to announce a foreclosure education campaign in Nevada called Stop Foreclosure Fraud.

The campaign, put on by the Nevada Foreclosure Prevention Taskforce, is meant to educate people about foreclosure fraud and mortgage scams.

“Each day, families are losing their homes or equity and their fair share of the American Dream,” U.S. Sen. Harry Reid, D-Nev., said at the event. “As foreclosures rise, so do instances of fraud.”

Nevada has the highest foreclosure rates in the country. About one in every 23 homes here is in foreclosure, about six times the national average, said state Attorney General Catherine Cortez Masto.

“Facing the possibility of giving their property back to the bank, the homeowner desperately looks for a lifeline and becomes a potential victim of a mortgage scam,” Masto said.

“Unfortunately, con artists use these foreclosures as an opportunity for profit,” said Federal Trade Commission Chairman Jon Leibovitz. “They promise to rescue homeowners teetering on the brink of a financial cliff...They push them over the edge instead of giving them the help they need.”

Some fraudulent companies have charged fees from $2,000 to $7,000 and, instead of helping, ran off with the money, he said.

Leibovitz said homeowners should avoid organizations that ask for up-front fees, offer to modify a loan or stop a foreclosure, or advise to stop paying a current lender and start paying them instead.

A handout by the Nevada Foreclosure Prevention Taskforce listed other red flags, including businesses that say not to contact a current lender or those that pressure customers into signing contracts.

NeighborWorks Program Director Marietta Rodriguez and Assistant U.S. Attorney General Tony West also spoke at the event, which took place at the Metro Police station at 750 Sierra Vista Drive.

“It’s quite regrettable that such a campaign is necessary,” Rodriguez said.

The education campaign will include public service announcements, fliers and billboards.

Those who suspect they might have been the victim of mortgage fraud or want to report something suspicious can call (702) 229-4663 or e-mail fightfraud.nv.gov.

Discussion: 4 comments so far…

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By KillerB

Nov. 24, 2009

8:23 p.m.

Suggest removal

All those officials and "experts" yet not one word about the biggest perpetrators of mortgage fraud -- the institutions like banks and their pilot fish, MERS, Regional Trustees Service, ReContrust, the servicers, the attorneys.
By KillerB

Nov. 25, 2009

9:49 a.m.

Suggest removal

4closure -- done the research, way ahead of you. Nevada's silver bullet is found in NRS 107.3501.
By KillerB

Nov. 25, 2009

10:44 a.m.

Suggest removal

oops -- that's NRS 104.3501