Mortgage Rescue Scams Target Black Churches
Driven by the sharp increase in foreclosure cases, desperate homeowners are falling prey to scams designed to profit from their distress. These Mortgage Rescue Scams are often targeted at minority communities. One of the most common schemes is to require an upfront fee to assist the homeowner in receiving a modification from their lender—a service that can be obtained for free from HUD certified community agencies. Other scams strip the equity from the homeowner’s investment, leaving them even further in debt or in extreme cases, the scheme may even deceive the homeowner into completely signing over the deed to the home. In response to the rapid increase of mortgage rescue scams, HUD created a Fair Housing Initiatives Program to help victims of mortgage rescue scams. Community Legal Services of Mid Florida (CLSMF) is contracted with HUD to provide these services within Orange, Osceola, Seminole and Lake Counties. One such scam being perpetrated in Central Florida is utilizing Black churches to gain access to victims. There are several companies suspected of these activities. These companies get the cooperation of the local pastor by promising a modification of the church’s loan or the pastor’s personal home loan and then hold seminars on “wealth building” in the church. After establishing trust, membersare urged to purchase loan modification services for a $1,500 to $1,800 upfront fee. Most people never get a modi- fication, lose their upfront fee and get further behind on theirmortgages. CLSMF is available to assist homeowners who have done business with any companies who have promised assistance with a foreclosure problem and no assistance was provided – especially if an upfront fee was collected. Potential victims are urged to call CLSMF at (407) 841-7777 ext. 2117and to visit www.clsmf.org/index .php/services/fairlending for more information. Community Legal Services of Mid-Florida, Inc. is a nonprofit organization whose mission is to provide access to justice through free, high quality legal assistance to eligible low-income persons in civil (non-criminal) matters.
