Attorney General Ellison warns of growing reports of mortgage assistance scams
September 19, 2024 (SAINT PAUL) — Today, Attorney General Keith Ellison issued a warning to Minnesotans about how to spot and avoid mortgage assistance scams, citing increasing reports of such scams to his Office’s Consumer Action Division.
The warning is part of the Attorney General’s monthly Scam Stopper series, aiming to help protect Minnesota consumers from common scams. Click here to view and download a video message from Attorney General Ellison or click here to download an audio message.
"I cannot abide scammers targeting anyone in Minnesota, especially people who are already going through financial difficulty,” said Attorney General Ellison. “Unfortunately, that is exactly what mortgage assistance scammers are doing to folks who are struggling with their mortgages. These con artists will promise some kind of help if given a large upfront payment. The scammer then pockets the payment and delivers none of the help they promised. I am issuing this Scam Stopper alert because my Office has seen a recent uptick in reports of these scams and the people of Minnesota need to be on their guard.”
How the Scams Work
Homeowners needing mortgage assistance are sometimes preyed upon by scam artists who charge upfront fees and fail to deliver on promises to save a home from foreclosure or to modify a borrower’s loan terms. In Minnesota, you should never pay up front fees for foreclosure assistance or prevention. There are nonprofit organizations that provide mortgage assistance for free as part of their mission.
Scammers typically target a borrower whose mortgage is in default or who has concerns about their ability to continue making timely payments. Some organizations or individuals may represent themselves as counseling agencies but are actually only out to make a profit off the misfortune of others. Typically, these entities will ask for upfront fees in exchange for “counseling” services such as financial advice, negotiating payments or other solutions with the lender, or exploring the sale of the property. These are services that borrowers can do themselves and may be offered for free by reputable organizations.
Scam artists that collect upfront fees may not actually provide any of the services promised or may even disappear overnight. Under Minnesota law, a foreclosure consultant is prohibited from collecting a fee until after it has provided a service to you.
Find the “Right” Kind of Help
Contact your lender as soon as possible if you are having trouble making your mortgage payments. Ask the lender what the options are. If you experience financial trouble that may jeopardize your mortgage payments, ask for help. Timely action can make the difference. The following agencies and organizations may be available to provide information, referrals, and assistance to homeowners regarding foreclosure issues:
United States Department of Housing and Urban Development (HUD)
Minneapolis Field Office
212 Third Avenue South, Suite 150
Minneapolis, MN 55401
(612) 370-3000
hudgov-answers.force.com/housingcounseling
Minnesota Housing
400 Wabasha Street, Suite 400
St. Paul, MN 55102
(651) 296-7608 or (800) 657-3769
www.mnhousing.gov
Minnesota Homeownership Center
1000 Payne Avenue, Suite 200
St. Paul, MN 55130
(651) 659-9336 or (866) 462-6466
www.hocmn.org
Lutheran Social Services Financial Counseling
424 West Superior Street, Suite 600
Duluth, MN 55802
(218) 529-2227 or (888) 577-2227
www.lssmn.org/Housing-Counseling
When a Scam Happens to You
Attorney General Ellison asks that Minnesotans report scams to his office immediately. Many people feel embarrassed when a scam happens to them, but the truth is that con artists and scammers are often professionals with years of experience. They are good at what they do, and they count on people feeling too embarrassed to protect others by speaking out. If a scam happens to you, please report it right away: not only may the Attorney General’s Office be able to help you personally, you will help others by allowing us to alert others.
Reporting a Scam
If you believe you are the target of a scam, file a complaint with the Office of Attorney General Keith Ellison online. You can also contact the Attorney General’s Office by calling (651) 296-3353 or (800) 657-3787.
For more information, see this publication from the Attorney General’s Office on mortgage assistance scams.
