FBI - Loan Modification Scammers Impersonate Government Agencies

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.

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Article Source:
http://EzineArticles.com/?expert=Justin_Bartlett

FBI - Loan Modification Scammers Impersonate
Government Agencies