NHS of the South Bronx joined Mayor Bloomberg, DCA Commissioner Jonathan Mintz, and NeighborWorks America to launch the Loan Scam Alert campaign. The NHS team gathered at the Hub in the South Bronx to spread the word that homeowners should never pay upfront fees for assistance in getting a loan modification. In fact, NHS and other members of the Center for New York City Neighborhoods provide this service without charge! Anyone who has trouble paying their mortgage should call NHS or 311 to get free reliable help.

Mr. Eric Stewart of Bedford-Stuyvesant, Brooklyn is thankful today that a stroke of luck and advice from his brother led him to Neighborhood Housing Services of Bedford-Stuyvesant (NHS). Like many homeowners today, Mr. Stewart was having trouble paying his mortgage. In a desperate attempt to save his home, he almost fell victim to a Loan Modification Scam perpetuated by a company that demanded an upfront fee of $3500 and guaranteed to lower his mortgage payment with an “Obama Plan Modification.”

Mr. Stewart intended to make the egregious payment, because he believed it was his only hope for saving his home. He even wrote the check and sent it to the scammers address. “By the grace of God,” said Mr. Stewart, “the payment never went through.” Meanwhile, his brother in Philadelphia was doing research online about the Making Home Affordable program and informed his brother that he could get free help just a few blocks away from his home at NHS of Bedford-Stuyvesant.  

“I was so distraught when I walked in the NHS office,” said Mr. Stewart, “but Ms. Primo put me at ease. She didn’t make any empty promises, but she explained the situation to me and made it easy for me to understand what I needed to do.” With the free assistance of NHS, Mr. Stewart did finally receive a Making Home Affordable loan modification.

In New York City, ‘Loan Modification Scam Alert’ campaign advertisements can be seen on an animated billboard in Times Square that will run until March 31, encouraging City residents to call 311 to access free foreclosure counseling services and file complaints against businesses using illegal and deceptive practices to sell loan modification services. Click here to learn more about the campaign or to report a scam.