It’s too bad that when something seems too good to be true it usually is. Home loan modifications have now become breeding grounds for scam artists out to take advantage of the downtrodden homeowner just looking to modify their current home loan and/or stave off foreclosure of the property. According to the California Department of Real Estate (DRE), since 2008, there have been over 4,500 cases involving home loan modification complaints. At the Federal level, with the FTC issuing a 2009 crackdown on fraud and deception in the home loan marketplace, it is just as bad, if not worse. So how can one protect themselves and their families from home loan and mortgage scams such as the ones currently plaguing our bearish economy..?
The Federal Trade Commission (FTC) states that these home loan modification schemes usually operate in similar ways. First, the scam artist will literally “guarantee” the success of the loan modification to his purported victim. With their supposed success rates hovering around ninety five percent and higher, these numbers, unfortunately, are just too good to be true — They try to grossly mislead you into thinking they’re perfect when it comes to modifying loans. The second part of the scam involves charging up front fees for those services. According to the California DRE, you should never pay such upfront fees – These fees are ILLEGAL. Legitimate non-profits will not charge such upfront fees. In order to accomplish all this, the scammers will make themselves look like reputable businessmen by using copycat names or mirror image websites in order to draw in unsuspecting customers. And for the coup de grace… they will do next to nothing with your loan modification, having left you lighter in the wallet without any of their promised loan modifications coming to fruition. Entities such as the Federal Loan Modification Law Center (FedMod), bailout.hud-gov.us, Home Assure, and Hope New Modifications LLC have already been investigated by the FTC for illegal actions towards its consumers. These are a few names to know, but for a better understanding of the FTC and the issue of illegal home loan modifications, take a look at http://www.ftc.gov/opa/2009/04/hud.shtm as well as check out the Canseco Group for more information. Remember to ask questions and be out for your own best interest. Come prepared… To make sure this is the case, check out http://www.dre.ca.gov/cons_DandR.html#licensing to find loan modification scammers who have had Desist and Refrain Orders thrown their way. The Canseco Group, is a good first step toward finding a home loan modification program that works for everyone involved, without the word “scam” being involved anywhere in the process. www.canseco.com When it’s your home at stake, there’s nothing more important than getting all the facts correct.
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