Mortgage Settlement Scam - NBC12 - WWBT - Richmond, VA News On Your Side

Mortgage settlement scam

RICHMOND, VA (WWBT) – A warning tonight from the state about a new scam going around saying you're owed money in a federal mortgage settlement. All you need to provide is your bank account number.

They're going after homeowners who are either underwater on their mortgages or have foreclosed on a home, people who need some financial relief.

The caller on the on the other line promises you money and says the government owes you a check.

Now all you have to do is give them your bank account number so they can directly deposit the money into your account.

Sounds good? Think again.

"If it's too good to be true, I'm sure it is," said Dave Fairchild, Chief Banking Officer at Union First Market Bank.

Fairchild deals with mortgages every day, and says there's no way you'd just get a random call.

"So if anybody were to offer you a mortgage settlement without you having executed all the documents and applied for it in the normal course, there isn't, it's not going to happen," said Fairchild.

The warning comes from the state a week after Attorney General Ken Cuccinelli announced the government's new multi-million dollar deal with major mortgage services to remedy faulty mortgage and foreclosure practices.

The legitimate deal offers selected homeowners who are underwater with their mortgages or those who lost their homes to foreclosure some money back.

The state says crooks jumped on the opportunity to scam innocent homeowners.

"They're very convincing and in these times and if you're desperate you can fall into that trap," said Fairchild.

For eligibility questions:

Borrowers should contact their mortgage service to obtain more information about specific loan modification programs and whether they qualify under terms of this settlement. The toll free numbers for the settling services are:

Bank of America: (877) 488-7814
Citigroup: (866) 272-4749
J.P. Morgan Chase: (866) 372-6901
GMAC: (800) 766-4622                                                                                                            Wells Fargo: (800) 288-3212

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