“Multi-Agency” Crackdown on Housing Fraud and Scamsby Tim Manni
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?
“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.