Kamala Harris - For California Attorney General 2010

S.F. moves to crack down on mortgage fraud

By Steve Rubenstein, The San Francisco Chronicle
April 2, 2009

Hucksters and con men seeking to cheat beleaguered homeowners with fake mortgage refinance schemes face increased likelihood of prosecution, according to a new campaign announced Wednesday in San Francisco.

"Vulnerable residents desperate for relief should not be preyed upon," said District Attorney Kamala Harris, speaking to a room of seniors at the Bayview Multi-Purpose Senior Center. "We need to ensure our at-risk homeowners and low-income families are not exploited."

Harris and assessor Phil Ting said they had put together a public education program to distribute leaflets and deliver lectures to community groups about the growing problem of door-t0-door hustlers who claim to be able to avert foreclosures but do nothing but pressure residents into large fees for worthless services.

A new brochure, titled "Don't Be Fooled," advises strapped homeowners to consult only with their actual lenders, which costs nothing.

"You do not need to pay anyone," says the brochure. "Companies promising to help you avoid foreclosure for a fee are preying on you."

Harris and Ting urged passage of proposed legislation, introduced Wednesday in Sacramento, that would make it illegal to accept payment for assisting homeowners to negotiate lower payments or refinancing. Harris said such con artists will be subject to maximum prosecution.

Joseph Ridout, a manager for Consumer Action, said tough times always bring out the scammers.

"Economic distress is big business for con artists," he said. "They come out of the woodwork. At times like these, it can be very expensive to be poor."

Source: sfgate.com

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