Loan Modification Scam Companiesbeing sued by California Government.

Posted on August 11, 2009
Filed Under Mortgage | Leave a Comment

Article by: 911-Foreclosure
To find more great articles like this Visit: Loan Modification News

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.

Most of the unscrupulous companies charge heavy upfront fees and then do little if any follow up once they receive the money. Desperate homeowners seeking a way out of financial straits are paying $1,500 – $4,000 to get help. Often, that money is a total waste.
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

Many lawsuits are being filed against corrupt Loan Modification Companies that are charging illegal fees before starting on the loan modification. Currently in order for a loan modification company to be approved to charge an upfront fee, they have to have the contract approved by the states’ Real Estate Department. Hundreds of companies have violated this law leaving the foreclosure epidemic in even greater upheaval.

Here is a list of the many companies and individuals that have received cease and desist orders or other accusations by the California Department of Real Estate – 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

Obviously these thousands of fraudulent companies would want nothing better than to rob a struggling homeowner. Instead of worrying about whether a loan modification company is right for you, it’s is much better to read articles such as this in order to arm yourself against future fraud. Be watchful of any person whom claims to charge upfront fees or offers you anything that’s “too good to be true”.

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