Beware Loan Modification Scammers Using Official-Sounding Names
April 6 (LA Times) - Those seeking loan modifications shouldn't be taken in by official-sounding names, warn Federal and state officials. Some of these outfits are scam operations. The frauds often involve companies with official-sounding names designed to make borrowers think they are using the Obama administration's efforts to help modify or refinance 7 million to 9 million mortgages. > Click here to read more on LATimes.com
VIDEO CLIP: Load Modifications Subject of I-Team, 20/20 Investigation
"A joint investigation from the 10News I-Team and ABC News 20/20 is warning homeowners of loan modifications."
Exponential Rise in Mortgage Fraud Seen by FBI
"Feb. 11 (Bloomberg) - The economic crisis has sparked an increase in criminal fraud, including an 'exponential rise' in mortgage scams that is straining the FBI's resources, a leader of the agency said." > Click here to read more on Bloomberg.com
Web Sites Scamming Homeowners Facing Foreclosure "Every day, thousands of people at risk of losing their homes are calling a non-profit, government-backed hotline. But there are Web sites and phone numbers of other so-called "foreclosure rescue services" scamming folks who've fallen on hard times." > Click here to read more on NBCWashington.com
Contact 13: Loan Modification Scam "Like thousands of Southern Nevadans you may be struggling to pay your mortgage and signs that promise to lower your monthly payments may seem tempting." > Click here to read more on KTNV.com
Con Artists Circle Over Homeowners on the Edge "At the Legal Assistance Foundation of Metropolitan Chicago, the phone calls come nearly every day from yet another financially desperate homeowner who's become the victim of a "foreclosure rescue" scam. "This has become the No. 1 problem in terms of calls we're getting and cases we're filing," says Daniel Lindsey, supervising attorney for the foundation's Home Ownership Preservation Project. And it's clearly a nationwide problem that's likely to get worse. The Better Business Bureau has received complaints from every state and has issued an alert to warn consumers to be cautious about foreclosure-rescue companies." > Click here to read more on USAToday.com
Loan Fraud Seen on the Rise "MORTGAGE volume may have fallen last year, but not incidences of fraud. In fact, according to a recent report from the Mortgage Asset Research Institute in Reston, Va., occurrences of fraud among loan officers, brokers and other industry professionals actually outpaced 2007 levels by 45 percent in the second quarter of 2008, the most recent reporting period." > Click here to read more on NYTimes.com
Loan-Help Schemes Scrutinized - Claims to Fix Mortgages for Fee Set Off Red Flags for the Feds "WASHINGTON -- The Justice Department is gearing up to probe potential scams targeting distressed homeowners in the San Joaquin Valley. On Friday, Rep. Dennis Cardoza, D-Merced, urged Attorney General Michael Mukasey to investigate mortgage-reduction schemes marketed in the region. For an upfront fee, homeowners are being told their monthly mortgage payments can be renegotiated. At best, the homeowners may end up paying for work that's available for free. At worst, they'll pay for work that isn't done at all." > Click here to read more on ModBee.com
Attorney General Accuses Home Loan Rescue Company of Fraud "ORLANDO: The Florida Attorney General's Office is suing an Orlando company for allegedly preying on homeowners in danger of foreclosure. Investigators allege Financial Management Advisors charged an upfront fee as high as $2,500 for loan modification services, which is against state law. Further, Bill McCollum's office alleges that FMA has no attorneys and accountants on staff, as it advertises." > Click here to read more on MSNBC.MSN.com
Firms Charge Thousands To Modify Mortgages A growing industry has emerged to take advantage of the unprecedented wave of foreclosures, charging distressed homeowners for help negotiating better loan terms -- a service provided for free or for a nominal fee by many nonprofits. Such companies charge $500 to $2,500 or more and are drawing the ire of consumer advocates, regulators and lenders, who say many are just the latest version of foreclosure rescue scams and can make it more difficult for homeowners to get help. > Click here to read more on WashingtonPost.com
Swindlers Find Growing Market in Foreclosures As home values across the country continue to plummet, the authorities say a new breed of swindler is preying on the tens of thousands of homeowners desperate to avoid foreclosure. Until recently, defrauders tried to bilk homeowners out of the equity in their homes. Now, with that equity often dried up, they are presenting themselves as 'foreclosure rescue companies' that charge upfront fees to modify loans but often do nothing to stave off foreclosure. > Click here to read more on NYTimes.com
Mortgage Rescue or Rip-off?Many for-profit companies now offer foreclosure counseling services to at-risk homeowners. Are they worth it? NEW YORK (CNNMoney.com) -- If mortgage lending was the Wild West during the boom years, foreclosure-prevention counseling is the lucrative new frontier of the bust. > Click here to read more on Money.CNN.com
Mortgage Loan Modification Scams on the Rise "The mortgage crisis has sent millions of homeowners in search of ways to modify their mortgage obligations. Unfortunately, it has also provided a breeding ground for companies bilking distressed homeowners for thousands of dollars in fees for services often available for free. Worse yet, many scam artists simply disappear after collecting their upfront fees from homeowners desperate to prevent foreclosure." > Click here to read more on FindLaw.com
Homeowners Should Be Wary of Some Loan Modification Pitches "With the rising tide of foreclosures not expected to recede anytime soon, offers to homeowners to modify that risky loan in a last-ditch effort to save their home also are up. Ken Lawrence of Silverado Mortgage in Redding has had clients call him to ask whether a loan modification is a safe way out. Lawrence says it can work but be careful." > Click here to read more on Redding.com
Loan Modification Scams Coming to Sacramento Opportunists who want to suck what little money you, the homeowner have left, are calling to HELP with a loan modification. Are you having trouble paying your house payment? Many Sacramento homeowners are. If it sounds too good to be true, it is. These scam artist are charging several thousand dollars to do what you can do yourself for FREE. Yes, many of these people are real estate agents and mortgage brokers hungry for money. These are the same people who put you in the position that you find yourself in today. Don't be fooled! > Click here to read more on SacramentoRealEstateVoice.com
