Friday, August 28, 2009

California Cracking Down on Illegitimate Loan Modification Companies

To find more great articles like this Visit: Loan Modification News

Beginning in mid-July: the California Real Estate Department, California Attorney General and the Federal Trade Commission buckle down on Scam Foreclosure Rescue Companies. 198 companies across the nation are being jointly sued for deceiving distraught home owners with upfront fees, fraudulent statements, and illegal gestures.

California, along with Arizona, Nevada and Florida were ground zero during the sub prime mortgage debacle. Some of the very same people involved in granting exotic mortgages to unqualified borrowers are now out in force offering to modify the very same mortgages they once originated.

Most of the unscrupulous companies charge heavy upfront fees and then do little if any follow up once they receive the money. Desperate homeowners seeking a way out of financial straits are paying $1,500 - $4,000 to get help. Often, that money is a total waste.

One loan modification company’s response to this statement is that they are “doing all they can” and are not concerned with the accusations brought against their company. Watch the Fox News Report Video that accompanies this post to view his entire statement or visit our feed on youtube at:

911 Foreclosure Video Channel.

Hundreds of foreclosure rescue companies are being brought to suit for charging “advanced fees” for the loan modification. In order for a Loan Modification Company to charge an upfront fee, the arrangement must be approved through the states Real Estate Department who reviews the legalities of the contract.

Here is a list of the many companies and individuals that have received cease and desist orders or other accusations by the California Department of Real Estate -
Also here is a list of companies that have engaged in business while not being licensed.

Looking at these lists of thousands of fraudulent companies, it is safe to say that they would like nothing better than to lighten an already distressed homeowner’s wallet. Be cautious of any company or individual that claims to charge upfront fees for Loan Modifications. It’s better to read more articles such as this to prepare yourself to avoid any scams that you can least afford.

Article by: 911-Foreclosure

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