Freddie Mac is hoping YouTube can help prevent troubled borrowers from losing their homes, or at least preserve their equity.
The company, one of the nation’s largest investors in residential mortgages, has produced a two-minute video that is has posted on the popular Internet site — at . The company said it wanted to try a different way to reach homeowners.
Freddie Mac developed the idea after a new survey found that one in four delinquent borrowers search the Internet first before contacting their bank or lender to find out how to avoid losing their home.
Such searches can send them right into the hands of someone with the sole mission of stealing the equity they have in that home.
Although home values have fallen in many areas of the country, many financially strapped borrowers still have equity. It’s that money these fraudsters are after.
“When you have an increasing population of delinquent and frightened borrowers, it’s like a dinner bell for scam artists,” said Brad German, director of public relations for Freddie Mac.
The prevalence of foreclosure scams across the country is a troubling trend, said Robb Hagberg, manager of fraud investigations for Freddie Mac. Hagberg told one tale of a Boston woman who trusted a scam artist because of his community and ethnic connections. The scammer pocketed over $200,000 through two sales to straw buyers — and the woman lost her home.
Why would the Boston homeowner and so many others allow someone to walk off with their equity? One word: Desperation.
People are so desperate to prevent their homes from going to foreclosure, they will believe anyone. The woman in Boston was looking for a savior but found a skunk.
What many homeowners can’t bear is letting the home go. But it’s better to sell it or even let it go through foreclosure and pocket any equity yourself than just give it away to a criminal.
People turn to these crooks because they often aren’t aware of legitimate ways to work out their loan problems. When Freddie Mac two years ago first looked at what homeowners do when faced with a foreclosure, 61 percent of survey respondents were unaware that there were ways to avoid losing their homes. The options may include a forbearance or repayment plan. In an update of the survey, the company found 57 percent were unaware of their options. At least that’s some progress.
As pointed out in the YouTube video, if you’re having trouble paying your mortgage, don’t rely on the superhuman promises of a foreclosure hero — because if you do, you’ll likely end up being cheated by a villain.
Michelle Singletary singletarym@washpost.com
