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On April 10, 2009, the Federal Reserve began
running ads in movie theaters in several
states that have been hardest-hit by
foreclosures as the recession worsens. The
ads warn consumers against scam artists who
are charging people for help that is free
from non-profit groups working with the
government.
The ads direct people to the Federal
Reserve’s Web site –
www.federalreserve.gov – where consumers
can get tips for avoiding foreclosure scams.
The Web site advises consumers:
– Work only with a counselor approved by the
Department of Housing and Human Development.
– Don’t agree to work with a counselor who
collects a fee before providing services.
– Be wary of “guarantees.” A reputable
counselor will not guarantee to stop the
foreclosure process, no matter the
circumstances.
– Understand any paperwork that you sign.
Don’t be pressured to do so if you haven’t
read it.
– If it sounds too good to be true, it
probably is.
A record 5.4 million homeowners, nearly 12%,
were at least one month late or in
foreclosure at the end of 2008, and scam
artists have been quick to move into the
business of “stopping foreclosures.” In
fact, there is no way to force a mortgage
company to stop a foreclosure, other than by
filing bankruptcy. Approved counselors may
be able to mediate a settlement between a
mortgage company and a homeowner, but
consumers should carefully investigate the
counselor’s qualifications before paying for
such services.
Kraft & Associates is a federally designated
Debt Relief Agency under the United States
Bankruptcy Code. We assist people with
finding solutions to their debt problems
including, where appropriate, assisting them
with the filing of petitions for relief
under the U.S. Bankruptcy Code.
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