KHP joins other agencies in alerting public to loan scams

KHP, a local NeighborWorks America® affiliate, will join in a press conference to alert the public to loan modification scams.  National organizations in support of this effort include NeighborWorks America®, HUD, Fannie Mae, Freddi Mac, Lawyers' Committee for Civil Rights and the Federal Trade Commission.  Press conference is scheduled for Tuesday, August 24 at 10am.

Below are six red flags homeowners should look out for.  These include any person or company that:

1. Asks for a fee in advance
2. Guarantees they can stop a foreclosure or get your loan modified
3. Tells you to stop paying your mortgage company and pay them instead
4. Pressures you to sign paperwork you haven't had a chance to read thoroughly and that you don't fully understand
5. Claims they're offering "government-approved" or "official government" loan modifications
6. Asks you to release financial information online or over the phone, even though you've never heard of them.

• If you suspect that you or someone you know has been the victim of a scam, report it by calling (888) 995-HOPE (4763) or visit www.LoanScamAlert.org for more information.
• You can also find free, HUD-approved counseling agencies through these resources.  (Knox Housing Partnership is a HUD-approved counseling agency.)