
| Over the duration of the last year, an alarming amount of unlicensed loan modification companies have popped up, taking money from homeowners for little or no assistance towards achieving a loan modification or other loss mitigation service to save their homes from foreclosure. As consumers are becoming more and more aware of scam modification companies through recent publications courtesy of the Obama Administration, prime-time news, and multifarious government agencies, these scam modification companies are increasingly evolving, even impersonating government agencies in an effort to affect a legitimate credible source of loan modification and mortgage help. The Federal Bureau of Investigation is reportedly investigating more than 2,000 cases of mortgage fraud in an effort to crack down on these fraudulent modification companies, and the FTC has sent warning letters to 71 companies accusing them of "suspicious advertising". A coordinated federal effort is investigating radio and billboard ads touting loss mitigation "expertise". In many cases, individual States' Attorney Generals are taking additional precautions through legislation to stop the flow of money from desperate homeowners to these fraudulent loss mitigation companies. California now requires each individual or corporate entity that collects up front fees for Loss Mitigation Services to hold a valid Real Estate License through the California DRE, as well as submit a copy of their fee agreement for California review. Washington has recently followed suit. Maryland has a no tolerance policy for collecting upfront fees for loan modifications. Universally the scammers seem to have capitalized on the new modification programs geared towards helping 8-9 million desperate homeowners, such as the Making Home Affordable Program, and FDIC's Mod-in-a-Box program, and attempt to pass themselves and their companies off as a "service" provided as part of the new plans. Many homeowners do need help in achieving loan modifications to achieve lower interest rates, affordable payments, and possibly balance reductions or partial forbearances. Guidelines for loan modifications are tightening as lending banks such as Wells Fargo and others are posting record profits and moving forwards on foreclosures. It is true that through the recent initiatives, many homeowners are able to get the assistance that they definitely need, however, hundreds of thousands of Americans are being foreclosed on each month, and the sad truth of the matter is that until more is done, and when there is a time when each and every homeowner in America can get an affordable mortgage through modification, people are still going to be seeking out modification companies for help. If you are considering hiring the services of a loss mitigation firm to represent you, it is important to investigate the company thoroughly regarding success rate and what they can do to help you. Also, find out if they charge for their services up front, or after successful modification. The first place to start in the modification process is with contacting a HUD counselor, your lender, and only then considering retaining counsel. On a final note, if you find a website with a government seal, or other supposed "government accreditation", and the website does not have a .gov web address, call the FBI immediately and do NOT do business with them. Loan Modification Zoom offers useful information on loan modification guidelines and loss mitigation department contacts and procedures that will enable homeowners to save their home and stop foreclosure. Ethically sound, Modification Zoom has saved over 100 borrowers from foreclosure pro-bono (free!). Contact today by calling (866) 760-9099, or visit us on the web at http://www.modificationzoom.com. Article Source: http://EzineArticles.com/?expert=Justin_Bartlett |
| FBI - Loan Modification Scammers Impersonate Government Agencies |
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