Oregon Homeowners Warned About Mortgage Relief Scams Demanding Upfront Fees

A federal court has temporarily halted a mortgage-assistance operation accused of using CARES-Act-related claims to lure homeowners facing foreclosure to make upfront payments.

This has led the Oregon Division of Financial Regulation (DFR) to warn that homeowners looking to lower their monthly mortgage payments must be wary of companies promising to save their homes.

The state regulator says that homeowners must exercise caution unless mortgage assistance companies are licensed. DFR says license numbers must appear in ads, and homeowners must avoid making upfront payments.

Homeowners Were Misled Into Paying Upfront Fees

According to the Federal Trade Commission (FTC), a federal court decision was prompted when a company allegedly scammed homeowners into paying illegal upfront fees by falsely claiming their mortgage relief program was linked to the federal CARES Act.

The promises of lowering monthly mortgage payments and fees never materialized.

The Scammers Use Public Records to Source Homeowners Involved in the Foreclosure Process

The DFR says scammers use public records to target people in the foreclosure process with mortgage loans. They also target seniors and people with limited English language skills.

Oregon does, however, rank well below the national average in foreclosure activity, although the state has recently seen a slight uptick in bank repossessions and foreclosures – the result of higher borrowing costs and post-pandemic economic pressures.

The state provides resources to help homeowners avoid default, like the ⁠Oregon Foreclosure Avoidance Program and the ⁠Oregon Homeowner Assistance Fund.