U.S. Senate Ramps Up Effort to Stop Mortgage Fraud

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

Senator Barbara Mikulski of Maryland’s office announced last week that the Senate successfully passed the Fiscal Year 2010 Commerce, Justice, Science and Related Agencies (CJS) Appropriations Bill, which allots $437 million to the Justice Department to track down and prosecute perpetrators of mortgage and financial fraud.

“It’s time to foreclose on the bad guys and stop the foreclosures on homes,” Senator Mikulski said. “I like most Americans, am outraged by the predatory practices, deceptive marketing and lending schemes that have swept across the country, especially in Maryland.”

According to Mikulski’s office, Maryland saw a vast rise in mortgage scams in 2008, totaling more than 60,000. The new money apportioned by the Senate to combat such scams will allow the Federal Bureau of Investigation (FBI) to hire 50 new agents and 60 new accountants who are dedicated to identifying scammers and bring them to justice.

If you are a homeowner and you are delinquent on your mortgage or facing foreclosure, beware of anyone who promises to secure a loan modification for you, especially if they ask for money up front. In Maryland it is illegal for anyone to charge a fee up front for a loan modification, but more importantly, there are a plethora of local non-profits who will help you for FREE. While there is no guarantee that your home can be saved, NHS of Baltimore’s housing counselors say they have secured positive outcomes for our clients more often than not.