Now Reading
Pima County warns about mortgage settlement scams

From the archive: This story is more than 10 years old.

Pima County warns about mortgage settlement scams

The Pima County Housing Center is warning homeowners about potential scams related to February's $25 billion mortgage settlement.

PCHC is sharing tips from Money Management International, a nonprofit consumer-credit counseling agency, for consumers to avoid foreclosure scams:

  • There are no fees involved in the settlement. Anyone asking for money in return for a quick settelement payment is scamming you, MMI said.
  • Don't panic. Scammers prey on the vulnerable and desparate to make irrational decisions.
  • Don't act under pressure. MMI advises not to sign any contract or disclose information before doing research. Information from anyone offering help can be received in writing.
  • Trust your instinct. If it sounds too good to be true, it likely is, MMI said.
  • Stay informed. Learn the details of your foreclosure deadlines. Contact your bank to find out if you qualify for the settlement.
  • Don't give out any personal information. If you're contacted by someone who says they are from your bank and is requesting personal information to verify your account information, ask for their contact information and tell them you'll call them back.

On Feb. 9, Arizona Attorney General Tom Horne announced Arizona would receive $1.6 billion of the $25 billion multistate settlement with five banks over mortgage lending practices and foreclosures.

Consumers who have home loans with Bank of America Corp., Citigroup Inc.,  J.P Morgan Chase & Co., Wells Fargo & Co., or Ally Financial Inc., could benefit from the settlement that promises relief to homeowners.

Arizona also had a separate lawsuit against Bank of America. BofA agreed to pay $10 million to prevent foreclosures, cushion the effects of the foreclosure crisis and prevent mortgage fraud, the Attorney General's Office said in February.

If you are concerned about a potential scam or have questions, call Don't Borrow Trouble at 792-3087 or the Pima County Housing Center at 624-2947.

— 30 —

Best in Internet Exploder