MINNEAPOLIS -- With forbearance protections ending during this stage of the pandemic, some struggling homeowners are sorting out their mortgage options, prompting fears scammers will take advantage of unsuspecting borrowers.
Minnesotans are encouraged to instead seek out free assistance programs.
Homeowners affected by the pandemic got relief through initiatives allowing them to pause their monthly payments. But those limits have been reached for many, and aid groups are reporting forbearance scams, including phony offers to extend protections.
Katherine Kelly, assistant Attorney General for Minnesota, fears they will soon hear more about scams, because they may not be evident right away.
"It takes a very long time for that person to realize it was a scam, because they think they can rest easy knowing that they've extended their forbearance, so they're not monitoring things," Kelly explained.
Inattention to detail raises the risk of foreclosure. The Minnesota Homeownership Center said a common scam right now involves dubious offers for a cash purchase of the property. Or, if the borrower is working with their lender on options, hackers might intervene with phony messages demanding immediate payment or a fee.
The Center and other nonprofits provide foreclosure prevention help at no cost.
Julie Gugin, president of the Center, said knowing the situation can be stressful, it is best to secure the help of organizations to guide you through the process without asking for a fee.
"We can help you navigate negotiations with your lender," Gugin pointed out. "We can help you understand your rights, during foreclosure and the process leading up to foreclosure."
And if you do end up deciding to sell, she advised working with a trusted real-estate professional, not an unfamiliar name who might end up taking your money while your past-due bills pile up. Earlier this fall, an estimated 1.5 million U.S. homeowners were in forbearance plans.
Disclosure: Minnesota Homeownership Center contributes to our fund for reporting on Civic Engagement, Housing/Homelessness, Livable Wages/Working Families, and Poverty Issues. If you would like to help support news in the public interest,
click here.
get more stories like this via email
Tax season is here and North Carolinians should find the relevant financial documents to ensure filing their returns is as smooth as possible.
Important documents include W2s from employers or 1099s for independent contractors. People should track deductions like property taxes, charitable donations and mortgage interest as well.
Joe Mecca, vice president of communication for Coastal Credit Union, said it is important to remember other, smaller sources of income.
"One of the things that people need to remember to get is a 1099 from your financial institution," Mecca emphasized. "You may have interest or dividend income from different types of accounts that you might have. Similarly, if you've got a brokerage account, you may receive a 1099 form from them."
Mecca noted the form is typically available online. Other important documents include those involving the sale of a home, education expenses, and state and local tax refunds. People can find resources for doing their taxes online at the IRS website. Credit union members have access to discounts for tax services from TurboTax and H-and-R Block.
Mecca recommended while people have the documents out, they can also prepare their financial future.
"This is a great time of year for people to take a look at their overall financial picture," Mecca advised. "Start planning ahead for some of the expenses that they may have in the coming year or some things that they might want to save for in terms of retirement or education."
Mecca added people might also consider working with a financial adviser. Taxes are due April 15.
Disclosure: Coastal Credit Union contributes to our fund for reporting on Budget Policy and Priorities, Civic Engagement, Community Issues and Volunteering, and Consumer Issues. If you would like to help support news in the public interest,
click here.
get more stories like this via email
Seven members of Oregon's congressional delegation have signed a letter demanding protection for the Consumer Financial Protection Bureau, to enable the federal agency to continue its work.
The Department of Government Efficiency closed the bureau earlier this month.
Jagjit Nagra, executive director of the group Oregon Consumer Justice, said the bureau plays a key role in protecting Oregonians from deception and overcharges by banks and other financial institutions. He argued the oversight is especially important to prevent predatory lending for large purchases like mortgages and student loans.
"When you take away that enforcement mechanism, you're basically giving Wall Street the chance to say, 'Oh, OK, now we can do more of whatever we want,'" Nagra contended.
The bureau was created in the wake of the 2008 financial crisis and since then, Nagra adds, the agency has returned $21 billion to consumers. Nagra stressed without the bureau, Oregonians will have less protection against hidden fees and financial scams, among other things.
Critics of the bureau said it has lacked accountability and its regulations stifle financial innovation. Nagra countered the Great Recession, along with other banking, savings and lending scandals, showed the nation needs oversight and strong enforcement of consumer financial protection laws.
"The CFPB never gets in the way of those businesses doing the right thing," Nagra pointed out. "The CFPB goes after businesses and other organizations that are defrauding consumers, that are cheating consumers."
The letter, signed by Oregon Democrats, charged big financial institutions, which the bureau was created to regulate, have prioritized dismantling it. Nagra added consumer protection should not be a partisan issue because everyone is a consumer. He emphasized the need for a united consumer voice.
Disclosure: Oregon Consumer Justice contributes to our fund for reporting on Consumer Issues, Human Rights/Racial Justice, Poverty Issues, and Social Justice. If you would like to help support news in the public interest,
click here.
get more stories like this via email
Scams are on the rise in the wake of the Los Angeles fires, according to a warning on social media from the Pasadena Police Department - so experts have some tips on how to avoid becoming a victim.
There have been reports of people pretending to be fire victims, approaching shoppers in store checkout lines and asking if they'll purchase items for them.
Kathy Stokes is director of fraud prevention programs with the AARP Fraud Watch Network.
"People will tell you that they're in need, and could you buy them baby formula?" said Stokes. "They'll take the baby formula to the next store, let's say it's a Target - then they'll go to a different Target and return it."
Lots of Go Fund Me pages have popped up after the fires - but experts say the safest way to help is to go through a trusted, established charity.
Several websites will help you verify whether a charity is legitimate - including Charity Watch, Charity Navigator, or Give.org, which is run by the Better Business Bureau.
There are also reports of people pretending to be from FEMA, or from insurance companies.
Some may offer to help speed up your claim - but then use your personal information to file a false claim or steal your identity.
Stokes said fake contractors may show up on your street with a truck and materials, and offer to help you rebuild on the cheap.
"If you're in a desperate situation, and you may not think to check credentials, or to try to get other companies to bid on the project, you may end up paying for something up front," said Stokes, "and then they go away, or they do a shoddy job."
Stokes said homeowners also need to be wary of people offering pennies on the dollar for real estate in the wake of the blazes.
Disclosure: AARP California contributes to our fund for reporting on Health Issues, Senior Issues. If you would like to help support news in the public interest,
click here.
get more stories like this via email