Local, state and national partners promote campaign to help distressed homeowners avoid and combat loan-modification scams

March 8 National Consumer Protection Week news conference sounds alert to rising foreclosure frauds

Attorneys General from Missouri and Kansas are joining with the Federal Trade Commission and local community organizations to launch a major campaign against foreclosure-rescue scams threatening homeowners and neighborhoods everywhere. The campaign and other local and national efforts to combat loan-modification scams will be discussed at a news conference Monday, March 8, 2:00 p.m. at the offices of the Mid-America Regional Council, 600 Broadway, Suite 200, Kansas City, Mo.

Kansas City is one of a number of cities participating in a national NeighborWorks America Campaign to help strapped homeowners avoid and report loan-modification scams and get real help from legitimate housing counselors.

“We are joining with a variety of government agencies and nonprofit organizations to combat these scams preying on families that are already faced with the challenge of saving their homes,” said Steve Hermes, a NeighborWorks spokesman.

Underscoring the event’s importance, Attorneys General Chris Koster from Missouri and Steve Six from Kansas are appearing jointly to sound the alarm against a crime increasingly victimizing struggling state residents who are facing foreclosure or falling seriously behind on their mortgages.

In addition, C. Steven Baker, Midwest Regional Director of the Federal Trade Commission in Chicago, will describe his agency’s national crack-down on phony foreclosure-relief operations, including filing cases against scams plaguing Midwestern homeowners.

Brent Stewart, president and CEO of United Way of Greater Kansas City, will also describe how that organization is offering its United Way 2-1-1 help line as a point of contact to direct homeowners to legitimate, HUD-approved housing counselors and away from scam operations.

“We are happy to assist this critical campaign and to offer the resources of 2-1-1 to help families who are at high risk of foreclosure-rescue scams,” Stewart said.

Foreclosure rates are reaching all-time highs nationally and in Kansas City. A weak economy, job losses and resetting, high-cost mortgages are prompting another wave to spread across the metro area, putting at risk hundreds more homeowners at all income levels. Many aren’t aware of help, making them vulnerable to growing loan-modification scams that charge illegal upfront fees and never deliver on their bogus promises.

The national and local campaign is an effort to alert at-risk homeowners of the rising scam activity. The local campaign will make use of resources and strategies developed in the national NeighborWorks campaign. Private funding of $20,000 for the local effort will be channeled through the Local Investment Commission to support the outreach campaign. Sponsors invite additional partners.

The news conference follows a morning roundtable at the Federal Reserve Bank of Kansas City where local, state and national government officials, area Congressional staffs and community housing organizations will discuss foreclosure trends and emerging issues affecting housing in the nation and region.

News Conference Information:
What: Loan-Modification Scam News Conference
When: Monday, March 8 at 2 p.m.
Where: Mid-America Regional Council, 600 Broadway, Suite 200, Kansas City Mo., 816.474.4240

Speakers:

• Steve Six, Attorney General of Kansas
• Chris Koster, Attorney General of Missouri
• C. Steven Baker, Midwest Regional Director, Federal Trade Commission
• David Warm, Executive Director, Mid-America Regional Council (Invited)
• Brent Stewart, President and CEO of United Way of Greater Kansas City
• Landon Rowland, Chairman, Local Investment Commission