Monday, November 29, 2010

FTC clamps down on mortgage modification scammers

Criminal enterprises posing as do-gooders who promise to get you out of the mortgage jam you're in: They claim they can persuade your lender to cut your monthly payments, forgive all penalties, slash your interest rate and even get your loan balance reduced. If your lender won't cooperate, they say they'll perform "forensic audits" on your mortgage and convince a court that your entire loan transaction should be canceled because of technical mistakes in the paperwork.
Bogus firms always insist on getting your money upfront — often thousands of dollars — and then do little or nothing.
The agency plans to ban almost all upfront payments, institute mandatory disclosure rules and place new restrictions on lawyers.
-Kenneth R. Harney, November 28, 2010, L.A.Times

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