Be a Savvy Consumer

March 2-8, 2014 was National Consumer Protection Week, (NCPW) a coordinated campaign that encourages consumers nationwide to take full advantage of their consumer rights and make better-informed decisions.

Every day, as consumers, we must make important decisions about finances, health, privacy, technology and more.  NCPW.gov offers consumers a wealth of tips, resources and information on a wide range of topics regarding how to protect yourself and loved ones from identity theft, con artists, scams and more. 

Take a look through the categories listed at the website for resources that will help you make your best choices as an informed consumer.

For more Consumer information

visit http://www.consumer.gov

To learn more about National Consumer Protection Week, 

visit http://www.ncpw.gov

For information and tips for Loan Modification Scam Alert, 

go to http://www.loanscamalert.org

Loan Scam Alert: Don’t Be Fooled

As more homeowners face foreclosure, we want to remind people not to get scammed by “loan mod” companies and other for-profit companies that make promises to rescue homeowners in default.  Their slick and appealing marketing materials may have you believing that they can save your home, your world, and your future, but don’t be taken in.  If you need foreclosure assistance, we urge you to contact TRIP’s HomeOwnership Center at 690-0020 for free, confidential, and professional assistance.  You may also contact any of the reputable not-for-profit housing counseling agencies listed on the NYS Division of Housing and Community Renewal’s website at http://www.nysdhcr.gov/Programs/ForeclosurePrevention/CounselListing.htm. 

Please also note that there will be monthly Foreclosure Clinics held locally with free legal review and housing counseling available.  April 15 and May 12 at the Legal Project. 5-8pm. Contact TRIP  at 690-0020 for more info.

A national campaign has been created by HUD, NeighborWorks America, and others to provide important info to consumers. You can find some valuable information at its website at www.loanscamalert.org.  A list of “6 Things You Should Know” is copied below from the website. 

New York State is also getting the word out to consumers to beware of scams.  A  Statewide “Loan Modification Scam Alert” campaign was launched last month during Consumer Awareness Day.  For more information, go to www.nysconsumer.org. 
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6 Things You Should Know
Scams aren't always easy to spot – but it helps if you know the warning signs to look for. Here are six red flags to indicate that you may be dealing with a loan modification scammer:

1. A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure.

2. A company/person guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise they will try their very best to help you.

3. A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. The minute you have trouble making your monthly payment, contact your mortgage lender.

4. A company pressures you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read, and you don't fully understand. A legitimate housing counselor would never pressure you to sign a document before you had a chance to read and understand it.

5. A company claims to offer "government-approved" or "official government" loan modifications. They may be scam artists posing as legitimate organizations approved by, or affiliated with, the government. Contact your mortgage lender first. Your lender can tell you whether you qualify for any government programs to prevent foreclosure. And, remember, you do not have to pay to benefit from government-backed loan modification programs.

6. A company/person you don’t know asks you to release personal financial information online or over the phone. You should only give this type of information to companies that you know and trust, like your mortgage lender or a HUD-approved counseling agency.

For more info: http://www.loanscamalert.org/

New Foreclosure Law Expected to Be Signed Shortly by Governor

New protections for homeowners facing foreclosure as well as tenants living in foreclosed homes will take effect within two months after the governor signs Governor’s Program Bill #46, which was passed by the NYS Assembly and Senate on November 16th.  The governor is expected to sign the bill in the next few weeks.

Homeowners in default can expect to get a 90-day pre-foreclosure notice, enabling the homeowner to consider his or her options without imminent threat of a foreclosure.  Information about local housing counseling agencies, like TRIP and RCHR, will be provided to encourage the homeowner to seek assistance. 

Another key provision for a homeowner is the right to have a “mandatory settlement conference” with her/his lender (or their representative) in court, where both parties must “negotiate in good faith” during this mediation session.  Lenders may not charge the homeowner a fee for attending a settlement conference and may be subject to sanctions if they fail to come with financial documents and other information required by mediators.  

Additionally, when lenders notify the state of an impending foreclosure action, the state must send the borrower’s name to housing counseling agencies, which can then help prepare the borrower in advance of its settlement conference.  The settlement conference provision stems from the hope that lenders will be more apt to work with borrowers to modify their loans; currently lenders claim they are overwhelmed by requests for modifications while homeowners complain that their cases drag on for months and months, putting them further behind in their payments.  

The legislation also includes important protections for tenants of buildings that go into foreclosure, requiring that a separate notice be delivered to tenants within 10 days of the service of the summons and complaint to the mortgagor (borrower). The notice informs the tenants that the building is in foreclosure and that they may have the right to stay in occupancy for the remainder of their lease term, of if they have no written lease, for ninety days after they are informed of the name and contact information for the new owner by the person or entity who takes title. Tenants in 1 to 4 unit buildings must be sent the notice individually; for larger apartment complexes, the notice must be posted outside each exit and entrance.  

In order to avoid the deterioration that can impact an entire neighborhood when a foreclosed home is not kept up, a provision of the legislation requires the plaintiff (lender) in a foreclosure action to maintain the property (consistent with NY property maintenance code) after the judgment of foreclosure is issued and until the property is sold.  If a tenant occupies the property, the property must also be maintained in a safe and habitable condition.  This provision may be enforced by the municipality, tenants, or a homeowners association, in applicable.

To prevent distressed homeowners from falling prey to “rescue scams,” the bill also includes provisions prohibiting “distressed property consultants” from taking any payment before completion of services.

This legislation creates new legal rights and responsibilities.  The foregoing article is not intended to be a substitute for legal advice. If you are involved in a foreclosure action you should seek the advice of an attorney to understand how this legislation impacts your situation. Homeowners facing foreclosure can contact TRIP’s HomeOwnership Center at 690-0020 for assistance in determining their mortgage options and/or can contact Legal Aid directly at 462-6765.

For more information about the new State legislation providing foreclosure protections, contact TRIP at 272-8289 x214 or hilary@triponline.org.

Loan Modification Scam Alert

Loan Modification Scam Alert

It's a growing problem across the country: Homeowners facing foreclosure are losing their money – and their homes – to loan modification scams. Information is your best defense. If you see the signs of a scam and know the facts, you can protect yourself.  Scams aren't always easy to spot – but it helps if you know the warning signs to look for. Here are six red flags to indicate that you may be dealing with a loan modification scammer: click here: How to Spot a Scam.

If you or someone you know suspects they may be victim of a scam, there is help. The Hope Hotline, 888-995-HOPE, is the point of contact for homeowners seeking assistance, protection and information on loan modification scams. For information on the Most Common Loan Modification Scams click here.

The "Loan Modification Scam Alert" campaign, launched on October 26, educates homeowners about loan modification scams and empowers them to protect their homes. The Homeowner's HOPE Hotline, 888-995-HOPE, is the central point of contact for homeowners who think they may be a victim of a scam.

Experienced counselors that serve on the Hotline will help remedy the situations of those who have fallen victim to scams. These counselors will then connect homeowners with other resources including a member of the Lawyers' Committee for Civil Rights Under the Law for free legal assistance, as well as the official loan modification scam alert website at www.LoanScamAlert.com.

Scam victims will be connected to seasoned HUD-approved housing and loan modification scam counselors and homeowners will also have free access to pro-bono attorneys who will review their case and work closely with state AG offices, the FTC, as well as local law enforcement to prosecute cases as appropriate.