Fed’s Theater Warnings About Foreclosure Listings Scams

To reach more homeowners troubled by foreclosure listings across the country, the Federal Reserve will use movie theaters to launch its advertisements warning homeowners about various foreclosure scams. The Fed will run its ads in 28 movie theaters in 14 large cities with the highest number of foreclosure listings.

The 30-second ad, created by National CineMedia, features still pictures of families and individuals, texts, voiceovers and the Fed logo. It first asks if the viewers are at risk of foreclosure, warns them about the proliferation of scammers and swindlers related to foreclosure listings and then advises them to read more tips on the Fed’s official web site.

Sandra Braunstein, head of the Federal Reserve’s Division of Consumer and Community Affairs, said the first ads will be aired in seven states starting April 9. The seven states, namely California, Florida, Nevada, Arizona, Ohio, Michigan and Georgia, are among the states with the highest number of foreclosure listings in 2008 and in the first quarter of 2009. The ads, costing $9,000, will be aired around the spring break when usually more people go the movies.

The ads were intended to combat the proliferation of radio, TV and billboard ads, flyers and people going from door-to-door convincing homeowners to hire them for loan modifications and other schemes protecting their houses from foreclosure listings. What they offer and then charge for thousands of dollars are often available free of charge on official government sites or offered by nonprofits and community centers.

Patricia Garcia Duarte, head of the Phoenix nonprofit group Neighborhood Housing Services, said the ads are very crafty and aired in English and in Spanish. Scammers, she said, know how to persuade distressed borrowers who are very vulnerable to offers of any kind of help.

Community organizations and housing advocates have also reported to the Fed and to attorney-general offices the proliferation of web sites that duplicate official government web sites, adding more confusion to foreclosure-troubled borrowers looking for advice on the Internet.

In the past, other federal agencies have used movie theaters to inform the public about important advisories. Alan Greenspan, former chairman of the central bank, has appeared on television ads aimed at providing financial education. This is the first time that the Fed will air its advertisements in movie theaters. The warnings against scams related to foreclosure listings will not feature any Fed official.

Related Posts:

• Fake Foreclosure Rescue Operations Rising
• Foreclosure Scam Artist Sentenced to 10 Years
• Foreclosed Home Search Made Easier for Homebuyers
• Find Foreclosed Home for Sale with Some Sleuthing Work
• Pennsylvania Foreclosure Help Plan Set Up by Governor, Wife