Article by: 911-Foreclosure
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In mid-July, the Federal Trade Commission and the California Attorney General’s Office working in tandem with the California Real Estate Department, jointly announced lawsuits, injunctions and fines against 189 companies across the nation, claiming they deceived distressed homeowners through various loan modification and foreclosure rescue schemes.
California, along with Arizona, Nevada and Florida were ground zero during the sub prime mortgage debacle. Some of the very same people involved in granting exotic mortgages to unqualified borrowers are now out in force offering to modify the very same mortgages they once originated.
Many of the Scam Foreclosure Rescue Companies charge burdensome upfront fees while hardly providing any services after they acquire the money. Often times, desperate homeowners looking for an opportunity to change their mortgage end up paying $1,500 – $4,000 when being scammed.This Fox News report shows the owner of one loan modification company clearly undisturbed by the numerous consumer complaints being lodged against his company -Watch the movie by Clicking the Video on the top right or on Youtube
Hundreds of foreclosure rescue companies are being brought to suit for charging “advanced fees” for the loan modification. In order for a Loan Modification Company to charge an upfront fee, the arrangement must be approved through the states Real Estate Department who reviews the legalities of the contract.
California’s Department of Real Estate has released a link listing all these fraudulent companies that have been confirmed. http://www.dre.ca.gov/cons_drs.asp.And here is a list of individuals that have engaged in unlicensed activities – http://secure.dre.ca.gov/publicasp/unlicenseddnr.asp
Looking at these lists of thousands of fraudulent companies, it is safe to say that they would like nothing better than to lighten an already distressed homeowner’s wallet. Be cautious of any company or individual that claims to charge upfront fees for Loan Modifications. It’s better to read more articles such as this to prepare yourself to avoid any scams that you can least afford.
