Federal and State Partners Announce Multi-Agency Crackdown Targeting Foreclosure Rescue Scams, Loan Modification Fraud
The Federal Trade Commission recently announced a crackdown on fraud and deception by mortgage modification and home foreclosure rescue companies. The FTC is seeking to halt the proliferation of these mortgage relief scams – which target distressed and vulnerable consumers who are delinquent or facing foreclosure.
Nackman & Feinberg, LLP is investigating claims of “Mortgage Foreclosure or Homeowner Rescue” operations using deceptive tactics to market their mortgage modification and home foreclosure relief services, including firms that marketed their “services” by giving the false impression they were affiliated with the federal government.
The frauds often involve companies with official-sounding names designed to make borrowers think they are using the Obama administration’s efforts to help modify or refinance 7 million to 9 million mortgages. The Federal Trade Commission has sent warning letters to 71 companies it says were running suspicious advertisements.
According to government officials at the Treasury Department, homeowners do not have to pay to participate in the administration’s Making Home Affordable program, which seeks to prevent foreclosures by making mortgages affordable through refinancing or modified terms.
The FTC said other signs of a mortgage scam 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.
The Federal Government's Website warns:
Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan. Do not pay – walk away!
If you have paid a fee for mortgage modification, contact Nackman & Feinberg, LLP using the form below.
This website is provided for general information about our law firm. The information you obtain at this site is not, nor is it intended to be, legal advice. Use of this website and any electronic communications between you and Nackman & Feinberg LLP ["The Firm"] does not cretae an attorney-client relationship.An attorney-client relationship will only be created upon a signed retainer agreement between you and The Firm.
You may reproduce materials available at this site for your own personal use and for non-commercial distribution. Commercial use of any portion of this website is strictly prohibited. All copies must include the above copyright notice.