A new wave of scam activity is targeting homeowners facing foreclosure. With the national foreclosure rate at an all-time high of 7.97%, many homeowners have turned to loan modification or foreclosure "rescue" companies for help -- only to realize they've been scammed.  To combat loan modification scams, Congress asked NeighborWorks America to launch a national public education campaign designed to empower homeowners to protect themselves against loan modification scams, find trusted help and report illegal activity to authorities.

On Monday October 26, NeighborWorks America launched its Loan Modification Scam Alert Campaign, a national public education campaign designed to help homeowners protect themselves against loan modification scams, find trusted help and report illegal activity to authorities.  NeighborWorks America will coordinate the nationwide effort through its 235 community-based affiliates and other local, state and national partner organizations, including the Department of Housing and Urban Development(HUD), the Federal Trade Commission and the U.S. Department of the Treasury.

Together, the partners aim to reach thousands of distressed homeowners in communities at high risk for fraud activity through real-life scam stories, collateral materials, print advertising, local radio PSAs, events, word of mouth and social media activity.  All national campaign materials will urge homeowners who are contacted or deceived by a scam artist to report it immediately by calling 1-888-995-HOPE(4673) or visiting www.LoanScamAlert.org. The hotline and Web site also connect homeowners to free guidance from a HUD-approved counseling agency. The campaign will target all audiences, but resources are focused sharpest on those groups that have already seen high levels of scam activity, including seniors, Hispanics, African Americans and Asian Americans.

More info about the campaign can be found in following website:

http://www.loanscamalert.org/korean.aspx

http://www.loanscamalert.org/chinese.aspx

http://www.loanscamalert.org/vietnamese.aspx

About NeighborWorks America

NeighborWorks America is a national nonprofit organization created by Congress to provide financial support, technical assistance and training for community-based revitalization efforts. NeighborWorks includes a national network of 235 community-based organizations in 50 states, which strives to create healthy communities through the work of thousands of residents, business people, government officials and other partners.