Tuesday, April 7, 2009

Administration Seeks to Combat Loan Modification Scams

Yesterday, the Obama Administration announced an initiative to fight loan modification scams that are preying on troubled homeowners searching for help.

As foreclosures continue to mount, opportunistic companies with official-sounding names have taken root across the U.S., making false claims that they can assist borrowers facing foreclosure. Many of these companies are charging distressed homeowners with fees of $1,000 to $3,000 for loan modification help that rarely pays off.

In addition, the Federal Trade Commission (FTC) recently discovered approximately 71 companies running suspicious home rescue plans. The FTC has already filed new cases against several of these companies to halt illegal practices of individuals and companies promoting loan-modification or foreclosure scams.

Consumers who are seeking to modify home loans can speak to a counselor for free through the government's "Making Home Affordable" program. For more information about that program, please visit www.MakingHomeAffordable.gov.

1 comment:

foreclosure attorney bradenton said...

I agree with the post. Anyway, banks have the most number of foreclosed properties they are usually the lender. That is why, if you want to buy these properties, go to your nearest bank. There are foreclosure attorneys that are specialized in this field. Thank you.