By Mark W. Olson

Homeowners not only deal with impending foreclosure, but also with con artists.

Housing councilors have been hearing from homeowners in danger of foreclosure, who have also been victims of fraud, said Eric Gentry, housing assistance manager with the Carver County Community Development Agency.

“There’s lots of scams out there,” Gentry said. Potential customers are told, “If you give us $3,000, we have an attorney on staff and promise you a loan modification,” he said.

However, Gentry notes, a loan modification is up to the lender, and there’s no guarantee a homeowner can get one.

The Minnesota Home Ownership Center notes that many predatory scams charge fees from $500 to $3,000, and offer “little to no services in return.”

Meanwhile, the CCCDA can pursue loan modification, or other options, for clients at no cost.  However, Gentry said. “The reality is there’s no guarantee, not even for us. We can’t guarantee they will walk away saving their home.”

Counseling

Housing counseling has increased by 500 cases from last year, said Mary Monteith, CCCDA assistant executive director. “And 80 percent of that number was directly related to foreclosure prevention and the remaining [clients] were looking for rental assistance.”

“Numbers last year were big to begin with,” Monteith said. “And I don’t think we here have seen the worst of it. We’re anticipating another [interest] rate adjustment, so that’s typically when calls come in.”

Monteith is anticipating a wave of foreclosures for homes in a much higher price-range – between $500,000 and $600,000, although not as high a number as homes foreclosed on in the $250,000 and lower category.

However, Monteith is hopeful. “All we can go on is things are going to settle down in 2010 and we’re banking on that here, so it better happen. We’re staying hopeful – the later half of 2010.”

CDA Foreclosure Assistance

                                 Jan.   Feb.    March    April   May   June   July   Aug.   Sep.   Total

Foreclosure cases 72    123     129       105    83     114    117   77      91       911

Foreclosure calls*    --       --       --            --         --     189    173   113    133      609

* Phone calls for foreclosure assistance since data was tracked, beginning in June. Source: Carver County Community Development Agency

For CDA assistance, call (952) 448-7715, Ext. 3 or visit www.hra.carver.mn.us.