Bankruptcy Indiana

No sooner had I blogged, earlier this week, about scams involving foreclosure consultants
(see "Indiana Bankruptcy Attorney Again Warms Of Foreclosure Consultant Scams"), I became aware of a new type of scam: Do-It-Yourself Loan Modification Kits for sale!

Again, I need to remind my Indiana bankruptcy clients and blog readers that free, certified mortgage counseling is available through the Indiana Foreclosure Prevention Network.
(You can reach them at 1-877-GET-HOPE.)  In addition, I and the other professionals in my four bankruptcy law offices, concerned about steeply rising foreclosure rates in Indiana, have been devoting time to counseling homeowners.  To the extent possible, we are helping clients negotiate with their lenders.

Wherever there are growing problems, I find, that's where scammers come in to take advantage of the situation.  Home Loan News highlighted complaints from consumers about lenders explaining to them that mortgage modification is available only for those homeowners who are behind on their payments.  When these same consumers did indeed fall behind on payments, they were still denied modification!  Meanwhile, a mortgage finance company owned by Goldman Sachs is the latest bank to be offered government rescue funds in exchange for easing the terms of failing mortgage loans.

The irony is, even as I and many other professionals do our level best to help advise desperate homeowners, all the news about government stimulus plans seems to bring scammers out in droves.  E-mails and postcards (claiming to be from the IRS) are coming to homeowners offering them financial help if they activate a new credit card with a purchase, sign up for a magazine subscription, or sign a contract to use "stimulus" money to buy foreclosed property.

One sure tip-off is requesting your bank account number or social security number.  That's a sure sign someone's trying to scam you!