New York Mayor Bloomberg and NeighborWorks rolled out a ‘Loan Modification Scam Alert’ on Thursday. The goal: to prevent yet more homeowners from falling victim to mortgage fraud.
Citigroup is holding off on foreclosures and evictions for 4,000 homeowners. Fannie Mae and Freddie Mac are expected to make a similar announcement, and other financial institutions are expected to follow suit.
Only 2 percent of those who sought help from a US counseling program lost their homes.
Foreclosures hit new highs in April and more are expected in months ahead.
As more than 5 million Americans fall behind on mortgages, banks signal a new willingness to reduce the principal.
Banks have begun to modify loans for mortgage-holders, but experts say not nearly enough.