Warnings on Foreclosure Properties in Movie Theaters

Real estate foreclosure properties have become so prevalent in the lives of Americans they have even reached the movies.

Federal Reserve officials believe they can reach more American homeowners if they present their public service ads in movie theaters, so they decided to commission a 30-second ad to warn moviegoers about the prevalence of fraudulent foreclosure prevention companies and other scammers.

Starting this weekend through April 17, the Fed ads will air in 18 theaters in 9 states with the largest numbers of foreclosure properties, namely California, Florida, Nevada, Arizona, Michigan, Ohio, Maryland, Georgia and Virginia.

The tagline of the Fed ads tells moviegoers to get help, and then it is followed by instructions to go to the web site of the Federal Reserve and read 5 tips to avoid foreclosure scams.

Other federal agencies have also been launching efforts to prevent distressed homeowners from approaching foreclosure properties scammers and then paying them upfront fees of several thousands.

The Federal Trade Commission has been working with Departments of Justice, Treasury and Housing and Urban Development to launch initiatives that would prevent shady foreclosure rescue companies from victimizing homeowners worried about their houses becoming foreclosure properties.

FTC said it has sent letters to 71 foreclosure rescue companies warning them about their deceptive operations and marketing schemes. FTC said it had reviewed the printed and online ads of these 71 companies and found them to be promising loan modifications seem too good to be true, such as giving 99 percent guarantees to prospective customers that their houses will never become foreclosure properties if they sign up for their services.

In 2008, the FTC also filed 11 legal actions against scammers who were the subjects of complaints by borrowers whose homes have been added to list of repo properties.

Similarly, U.S. Attorney General Eric Holder has also released a statement warning unscrupulous operators that the Department of Justice will pursue them and punish them if they worsen the situations of homeowners already battered by foreclosure properties.

Many state attorneys have also launched legal efforts to protect their constituents. In Illinois, Attorney General Lisa Madigan has sued two operations victimizing mortgage borrowers.

Distressed homeowners are advised to call 877-483-1515 or visit the HUD website www.hud.gov. The HUD service refers homeowners to HUD-certified counselors in their local communities that provide foreclosure prevention counseling services for free.

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