Local Non-Profit Praises Attempts to Protect Homeowners

Written by The IMPACT! Group

In light of recent foreclosure demonstrations by various groups and reports in the news media, The IMPACT! Group welcomes the announcement by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Consumer Financial Protection Bureau (CFPB), and the U.S. Department of the Treasury that they have partnered to combat scams targeting homeowners who seek to apply for assistance under the Home Affordable Modification Program (HAMP). This new task force builds upon earlier efforts to prevent mortgage modification scams which can defraud thousands of dollars from families seeking mortgage assistance.

This new task force has issued a consumer alert that provides guidance on how to approach a loan modification under HAMP. The alert recommends that consumers should be wary of any third party that can claim to guarantee a modification. The alert notes that in most cases it is illegal for any entity to charge a consumer for a modification service prior to the modification actually being made. Consumers should also beware of any advice that asks them to stop making mortgage payments or to avoid contacting their mortgage lender.

"There are no guarantees when it comes to modifying a home mortgage," according to Tom Merkel, President of the Norcross-based IMPACT! Group. "Any person or agency that either guarantees success or charges for their services ought to be scrutinized because that's how scams operate. They prey on families' ignorance about the loan modification process and rely on victims not asking questions."

The task force has noted that scam artists can use many different titles, including titles like Loan Modification Consultant, Forensic Foreclosure Consultant, and Short Sale Negotiator. Moreover, it is not unknown for established professionals like real estate agents and lawyers to have a hand in conducting a scam. Residents who suspect individuals of illegal activity involving HAMP should call the SIGTARP Hotline at 1-877-SIG-2009.

While consumers can seek a mortgage modification on their own, Gwinnett County is already home to a HUD-certified housing counseling agency: the nonprofit IMPACT! Group. The IMPACT! Group provides free housing counseling to homeowners and homebuyers of all backgrounds and can help guide a household through the mortgage modification process. Founded in 1993, The IMPACT! Group operates a Homeownership Center which assisted over 3,000 households with foreclosure prevention, homebuyer assistance, and financial education last year.