Mortgage Relief Scam Raises the Risk of Home Foreclosure

by San Antonio Attorney

More mortgage relief companies have been pursued by the Federal Trade Commission for claiming to help homeowners to avoid foreclosure. The agency has taken actions against an additional six firms that were allegedly operating phony foreclosure rescue. The Consumer Financial Protection Bureau also filed charges against certain mortgage relief companies.

There are many people from all walks of life struggling to save their home from foreclosure. Dave Mahoney was lured by a company that contacted him on the phone proposing a mortgage relief he seriously needed. They asked $1.500 upfront to process the paperwork that he filled out.

He paid a total of $2,600 thinking that the mortgage relief firm was dealing with his bank. He was told to stop his mortgage payments and wait. But he did not get his payments reduced or his mortgage modified.

When his lender called regarding delinquent payments, the mortgage relief servicers can no longer be found. Foreclosure was approaching and his money was gone.

Mortgage relief scammers aim at homeowners who are desperate to avoid foreclosure. These people may appear legit and very convincing, according to a warning by the attorneys at the Northwest Consumer Law Center. Mahoney’s lawyer Katy Box says he called her just in time that she was still able to get a mediation commenced on his behalf, and stops the foreclosure proceedings against the mortgage loan of her client.

Some mortgage relief companies produce false loan modification approvals that look very real, says Box. The fraudsters can even copy the official government logo and language.

In another latest scheme, fraudsters are pretending to be refund specialists.  They offer to help recover the money homeowners lost in the loan modification fraud, but they have to pay an upfront fee.

If a mortgage relief company or refund specialist contacts you first and asks for a large upfront fee, be wary and contact your lender.

 

 

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