Events Calendar
In This Section
Most Read Stories
Akron man, 28, found dead after fall from vehicle
Police: Ohio man allowed wife to be eaten by maggots
Young's Hotel to be torn down; private developer to build hotel, retail complex on Akron site
'Food Feuds' to weigh in this week on Akron burgers, Barberton chicken
Tinted windows lead to police chase, crash in Akron
Two Akron men charged after attempted break-in at Green home
Blogs:
Ohio Politics/Elections:
Boccieri Shows Up at Renacci Town Hall, Engages in Impromptu Debate
Cleveland Browns:
Marla Ridenour on Sports:
Browns find plenty of good men
Varsity Letters:
Gridlocks: Week 3
The330:
Kanakaredes says she’ll have ‘CSI’ memories to treasure
Tribe Matters:
Monday’s Tribe lineup
First Bell - On Education:
Report is filed on bus incident
The Heldenfiles:
TNT Orders "Dallas" Pilot
Pets:
PAWS Pet of the Week: Meet Autumn!
Cleveland Cavaliers:
Scott believes Cavs can still win
Akron Zips:
No. 1 UA secures 2-0 win over No. 3 Wake Forest
Kent State Sports:
Around the MAC–Week 1
Akron Docs in Haiti:
Orphans in Fondwa
Buckeye Blogging:
‘The Shoe’ is Open for Business
All Da King's Men:
"They Talk About Me Like A Dog"
Blog of Mass Destruction:
Endangering U.S. Troops To Regain Power?
Akron Law Café:
Losing Common Ground
Car Chase:
Free Glenmoor Gathering Tickets
Let's Talk Real Estate:
Gossip Girl
Sound Check:
Robert Wilson, Gap Band bassist, dies
See Jane Style:
Making It Up
HRLite House:
From the White House – New Federal Approach to Hiring
By Rick Armon
Beacon Journal staff writer
POSTED: 09:26 p.m. EDT, Jun 09, 2010
Housing advocates warned Wednesday that mortgage rescue scams are on the rise in Ohio, particularly against minorities, the elderly and others struggling to pay their monthly bills.
The scams, spurred by the continuing foreclosure crisis, range from phony government programs to demanding money upfront for help and then not delivering it.
Nonprofit housing groups throughout the state held special events during ''Ohio Alert Day'' to warn homeowners to avoid crooked deals.
The East Akron Neighborhood Development Corp. went door to door in the city handing out materials for about an hour Wednesday afternoon. The group also set up a booth all day at Dave's Supermarket in the Middlebury Market Place retail plaza to talk with residents.
In Ravenna, Neighborhood Development Services and the Portage County Prosecutor's Office conducted a four-hour scam and foreclosure prevention clinic.
Similar events, sponsored by NeighborWorks America in Washington, D.C., took place in Cincinnati, Cleveland, Dayton, Springfield and Toledo.
''This is such an important issue now,'' said Fred Vaughn, deputy director of East Akron Neighborhood Development. ''The scams have increased as the number of mortgage lenders are doing more loan modifications.''
He and Tiffany Shelton walked along Davies Avenue in the rain and knocked on doors to chat with homeowners. They carried yellow fliers — one that screamed ''Loan Modification Scam Alert'' and directed people to the Web site http://www.loanscamalert.org.
It also warned people to avoid groups or companies that ask for fees in advance, guarantee that they'll stop a foreclosure or modify a loan, or tell a homeowner to stop paying a mortgage company and pay them instead.
Advice from residents
Davies Avenue resident Pat Marusiak appreciated the face-to-face contact and said it probably will help some people, although she quickly added that she'd never fall for such a scam.
''There are people who buy into anything,'' she said. ''Where's your common sense?''
Akron resident Thad Felding picked up materials at Dave's Supermarket. His advice for people in trouble is to seek out other opinions.
The initial wave of housing problems involved predatory lending and then scammers moved on to employment-related cons, said Dave Vaughan, executive director of Neighborhood Development Services. Now, those scam artists have moved on to loan modifications because of President Obama's Home Affordable Modification Program, which offers financial help for struggling homeowners.
''We had not seen them here for a while,'' Vaughan said. ''They had been reported in other states and now we are seeing them here on a much more regular basis.''
The biggest scam involves companies or counselors asking for an upfront fee for help. Counseling groups approved by the U.S. Department of Housing and Urban Development do not charge a fee for assistance, Vaughan said.
Sometimes, a group will ask for $1,500 to start negotiating with a mortgage lender, then never follow through.
Other scams involve guarantees to stop a foreclosure or to modify a loan, pressure to sign over the deed to the home, claims about ''government-approved'' or ''official government'' loan modifications, and requests to release personal financial information.
Vaughan cited one case in which a homeowner refinanced her home but the mortgage lender never paid off the first loan, leaving her with two payments. That case is headed to the prosecutor's office, he said.
''Never pay for assistance,'' Vaughan said when asked what his top advice is for struggling homeowners. ''And second, make sure whoever you deal with is a HUD-approved counseling agency.''
Help is available
For more details, contact East Akron Neighborhood Development's Center for Homeownership at 330-724-0244 or http://www.eakronndc.org. Neighborhood Development Services can be contacted at 330-297-6400 or http://www.ndsohio.org.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
Housing advocates warned Wednesday that mortgage rescue scams are on the rise in Ohio, particularly against minorities, the elderly and others struggling to pay their monthly bills.
The scams, spurred by the continuing foreclosure crisis, range from phony government programs to demanding money upfront for help and then not delivering it.
Nonprofit housing groups throughout the state held special events during ''Ohio Alert Day'' to warn homeowners to avoid crooked deals.
The East Akron Neighborhood Development Corp. went door to door in the city handing out materials for about an hour Wednesday afternoon. The group also set up a booth all day at Dave's Supermarket in the Middlebury Market Place retail plaza to talk with residents.
In Ravenna, Neighborhood Development Services and the Portage County Prosecutor's Office conducted a four-hour scam and foreclosure prevention clinic.
Similar events, sponsored by NeighborWorks America in Washington, D.C., took place in Cincinnati, Cleveland, Dayton, Springfield and Toledo.
''This is such an important issue now,'' said Fred Vaughn, deputy director of East Akron Neighborhood Development. ''The scams have increased as the number of mortgage lenders are doing more loan modifications.''
He and Tiffany Shelton walked along Davies Avenue in the rain and knocked on doors to chat with homeowners. They carried yellow fliers — one that screamed ''Loan Modification Scam Alert'' and directed people to the Web site http://www.loanscamalert.org.
It also warned people to avoid groups or companies that ask for fees in advance, guarantee that they'll stop a foreclosure or modify a loan, or tell a homeowner to stop paying a mortgage company and pay them instead.
Advice from residents
Davies Avenue resident Pat Marusiak appreciated the face-to-face contact and said it probably will help some people, although she quickly added that she'd never fall for such a scam.
''There are people who buy into anything,'' she said. ''Where's your common sense?''
Akron resident Thad Felding picked up materials at Dave's Supermarket. His advice for people in trouble is to seek out other opinions.
The initial wave of housing problems involved predatory lending and then scammers moved on to employment-related cons, said Dave Vaughan, executive director of Neighborhood Development Services. Now, those scam artists have moved on to loan modifications because of President Obama's Home Affordable Modification Program, which offers financial help for struggling homeowners.
''We had not seen them here for a while,'' Vaughan said. ''They had been reported in other states and now we are seeing them here on a much more regular basis.''
The biggest scam involves companies or counselors asking for an upfront fee for help. Counseling groups approved by the U.S. Department of Housing and Urban Development do not charge a fee for assistance, Vaughan said.
Sometimes, a group will ask for $1,500 to start negotiating with a mortgage lender, then never follow through.
Other scams involve guarantees to stop a foreclosure or to modify a loan, pressure to sign over the deed to the home, claims about ''government-approved'' or ''official government'' loan modifications, and requests to release personal financial information.
Vaughan cited one case in which a homeowner refinanced her home but the mortgage lender never paid off the first loan, leaving her with two payments. That case is headed to the prosecutor's office, he said.
''Never pay for assistance,'' Vaughan said when asked what his top advice is for struggling homeowners. ''And second, make sure whoever you deal with is a HUD-approved counseling agency.''
Help is available
For more details, contact East Akron Neighborhood Development's Center for Homeownership at 330-724-0244 or http://www.eakronndc.org. Neighborhood Development Services can be contacted at 330-297-6400 or http://www.ndsohio.org.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
Most Commented Stories
- 136
Young's Hotel to be torn down; private developer to build hotel, retail complex on Akron site
52
- 47
- 35
Don't extend tax breaks for wealthiest, Obama says in Cleveland
35
- 30
'Food Feuds' to weigh in this week on Akron burgers, Barberton chicken
23
Two Akron men charged after attempted break-in at Green home
22
- 21
Akron police react unhappily to tentative pact that saves jobs but forces concessions
19
