Opinion
Beware of Mortgage Scams Targeting Elders
T
he economy has had a detri-
mental
effect
on
homeownership.
Unem-
ployment and underemployment
have made it tough for many
homeowners to maintain current
mortgage payments. In attempts to
get assistance and avoid foreclo-
sure, vulnerable homeowners
become prime targets for scam
artists who are taking advantage of
people through a wide array of
mortgage scams. For homeowners
in need of assistance, now is the
time to be more vigilant than ever.
Through December 31, 2011,
the Federal Bureau of Investiga-
tion (FBI) had more than 2,500
pending investigations into mort-
gage fraud around the country.
Although the scope of losses for
homeowners, legitimate business-
es and to the economy caused by
mortgage fraud are difficult to cal-
culate, CoreLogic, a research and
analytics company, has estimated
that losses due to mortgage fraud
in 2011 were $7.4 billion.
Scams from All Sides
There are many variations of
mortgage scams, but the goal is
M ORTGAGE S ERVICING
Marie Day
the same: take money and even
property from unaware homeown-
ers. Some scammers guarantee
future. Still others may claim that
they could help expedite short
sales.
Some swindlers have even used
direct mail with prominent use of
the lender’s name to gain the trust
of customers and trick them into
believing an offer for assistance is
Homeowners looking for help to avoid
foreclosure are primary targets
that they can negotiate a loan
modification with your lender for
an up-front fee. Others claim they
are affiliated with government
agencies and the new loan modifi-
cation programs. Some fraudsters
say they can conduct forensic loan
audits to determine whether loans
were made in accordance with
federal and state mortgage lending
laws. Other schemers convince
homeowners to surrender the title
or deed of their homes in
exchange for a new “rescue” loan,
or as part of a deal that would let
the homeowners rent the home for
a few years and then have the abil-
ity to repurchase the home in the
from their lender. Since home-
owner names, addresses, lender
names and original mortgage loan
amounts are available to anyone
Protect Yourself and Get
Assistance
In order to protect yourself from
scammers, always be on the look-
out for key warning signs.
Fraudsters might:
Request payment or charge fees
in advance.
Guarantee results.
Direct homeowners to stop mak-
ing mortgage payments and
instead make a payment to a third-
party organization.
Tell homeowners that they can-
not deal with their lender directly.
Request that a homeowner sign
over the deed or other papers.
File complaints with the Federal Trade
Commission at www.ftc.gov/complaint
or call them at 877-FTC-HELP
through public real estate records,
con artists use this information to
create direct mail pieces that con-
fuse potential victims into
thinking that they are dealing with
their lender.
Ask for personal information
over the phone or email.
Pressure the customer to per-
form a specific action.
If you are having financial diffi-
culties in paying your mortgage,
you should contact your lender
and a housing counselor approved
by the U.S. Department of Hous-
ing and Urban Development
(HUD). HUD-approved coun-
selors can provide assistance free
of charge, or for a nominal fee. A
list of counseling agencies near
you can be found at www.hud.gov.
If you have doubts whether direct
mail that claims to be from your
lender is legitimate, call your
lender directly and confirm it. And
finally, if you think you have been
scammed, you should file a com-
plaint with the Federal Trade
Commission
online
at
www.ftc.gov/complaint or call
them at 877-FTC-HELP. Scam-
mers are working hard to take
advantage of people in distress.
It’s imperative that you get
informed and take precautions to
not become their next victim.
By Marie Day, Residential
Mortgage Default Servicing and
Community Outreach Executive,
Wells Fargo
National Urban League to Nike: Just Don’t Do It
T O B E
E QUAL
Marc Morial
promotion of misdirected priorities to our
children, and the potential and sometimes
real violence associated with this type of
marketing campaign. Following is a copy
of that letter.
August 24, 2012
“T
he economy continues to fall
apart, unemployment rates are
through the roof and Nike knows
that the kids are strung out. So they just
keep mass marketing high-priced cool to
those who can’t afford it.”
- Stephen A. Crockett, Jr., Washington
Post
In recent weeks, on behalf of the National
Urban League, I have been urging Nike to
That message is
undermined by Nike’s
appeal to shallow
materialism
reconsider its plans to market a new basket-
ball shoe targeted to urban youth that will
be priced in the neighborhood of $300. We
understand that adolescence is a time domi-
nated by peer pressure, the emulation of
celebrities and the need to fit. This often
leads to equating self-esteem with material
status symbols, including high-priced
sneakers. Aside from the misplaced values
this represents, it can have devastating con-
sequences for low income urban families.
All of us – from parents and children to cor-
porations –have a responsibility to
recognize this problem and do something
about it. On August 24th, I sent a letter to
Nike company officials outlining our oppo-
sition to the upcoming release of their latest
overpriced basketball shoe. Our objections
include the economic exploitation of low-
income youth and their families, the
Mark Parker
President & Chief Executive Officer
Philip H. Knight
Chairman of the Board of Directors
Nike, lnc.
One Bowerman Drive
Beaverton, OR 97005-6453
sneakers when those dollars would best be
spent on school supplies, books or comput-
ers. They ultimately are responsible for the
choices they make for their children, and for
the values they instill in them. But good
corporate citizens and responsible commu-
nity members should help, not hinder
parents in their efforts.
Please reconsider your plans for the
LeBron X Nike Plus, and join the National
Urban League in our efforts to empower
young people to value their own talents –
athletic and otherwise – above empty status
symbols, and work together for broader
access to the economic mainstream.
Sincerely yours,
Marc H. Morial
c
Mr. Parker and Mr. Knight:
In light of the recent news that Nike plans
to release a $315 basketball shoe, I ask that
you pause to reflect on the implications of
your decision during this fragile economic
recovery.
It’s no accident that Nike is a coveted
brand among the nation’s urban youth. It’s
no secret that the frenzy surrounding Nike
product launches repeatedly results in erup-
tions of violence. Obsession with the Nike
brand in poverty-stricken communities,
according to published reports has led to
muggings, beatings, and worse.
With unemployment and its attendant
hopelessness and desperation at historic
highs in the very communities targeted by
Nike’s aggressive marketing, now is the
time to step back and consider the true
impact of this kind of campaign. To release
such an outrageously overpriced product,
designed to appeal to a young, urban demo-
graphic, while the nation is struggling to
overcome an unemployment crisis is insen-
sitive at best.
Nike may well assure itself that it is not
responsible for the priorities and values of
its customers, but it can choose to address
the negative consequences of its own mar-
keting.
In recent years, Nike’s
award-winning advertising has promoted a
message of personal achievement and self-
esteem. That message is undermined by
Nike’s appeal to shallow materialism.
As you are aware, in our public statement
earlier this week, we called upon parents to
resist the pressure to purchase expensive
September 26, 2012
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