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April 6th, 2009

“Multi-Agency” Crackdown on Housing Fraud and Scams



Several Federal and state agencies have teamed up to crack down on mortgage loan modification fraud and foreclosure rescue scams — and the agencies are naming names!

The Federal Trade Commission (FTC) announced that they have sent warning letters to 71 companies “that are marketing potentially deceptive mortgage modification and foreclosure assistance programs. The letters inform these companies that their ads may violate federal law.”

The FTC has also taken “law enforcement actions” against the following companies:

  • Federal Loan Modification Law Center (FedMod)
  • [the websites] bailout.hud-gov.us and bailout.dohgov.us
  • Home Assure doing business as Expert Foreclosure
  • Hope Now Modifications LLC and New Hope Property LLC d/b/a New Hope Modifications LLC

Do any of these companies or websites sound familiar to anyone?

From FoxNews.com:

“Stay away from anyone who says they will save your home in return for money up front,” Illinois Attorney General Lisa Madigan told reporters in Washington. Such claims, she said, “are almost always scams.”

Homeowners do not have to pay anything to participate in the administration’s Making Home Affordable program, which seeks to prevent foreclosures by making mortgages affordable through refinancing or modified terms.

Other signs of a mortgage scam, according to the FTC are: promises to stop foreclosure or modify a loan; guarantees that your home will be saved and claims of a “97 percent success rate;” and use of official-sounding names.

For the latest government-sponsored programs, agencies, and resources dedicated to avoiding foreclosures, visit HSH.com’s foreclosure help page.

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6 Responses to ““Multi-Agency” Crackdown on Housing Fraud and Scams”

  1. Esko Kiuru Says: April 6th, 2009 at 6:30 pm


    What took them so long? This abuse has been going on for months and since no one seemed to check on these scam artists, much less stop them, more entered the marketplace. One of the better ways to stop it is to publish their names, as is now happening.

  2. Imee Says: April 7th, 2009 at 1:39 am

    I think it’s good that scams on mortgage/housing are being addressed (FINALLY!) especially in a really bad situation like this recession we’re going through. As if the financial crisis wasn’t bad enough, people still had the guts to create frauds to trick the most vulnerable people who least deserve that kind of treatment.

  3. Tim Manni Says: April 7th, 2009 at 12:12 pm

    Hey Esko,

    I can only imagine how long Federal agencies ignored this issue before they decided to commit to investigations to it. Yet, I was quite proud when I came across this info. We all know how long it takes federal agencies to operate, but it seems to me that they acted on this rather quickly (in terms of how slow the government usually works to implement programs and such). A good bit of research and investigations, which I can only assume took some time to put together, went into this. As you said, I can’t believe they’re actually naming names! What better deterrent is there than that right?

    How’s your blog coming along?

    Good to hear from you and thanks for commenting,

  4. Tim Manni Says: April 7th, 2009 at 12:33 pm


    Good to hear from you again. “FINALLY” is right! Fraudsters are all the same — with every new relief effort announced, no matter what it may be — scammers are there, waiting to take advantage of those seeking help. With all the new government initiatives announced within the past year, scammers were having a field day. I agree, these people are the lowest of the low. I’m just happy the Federal agencies were on it, and that they’re calling these companies out!

    Hope to hear from you again soon, thanks,

  5. Making a Loan Modification Sale – The Basics Says: June 19th, 2009 at 11:15 am

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  6. Making a Loan Modification Sale – The Basics | Next Wave Marketing Strategies Says: September 19th, 2012 at 1:02 pm

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HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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