The foreclosure crisis is ongoing, and foreclosure rescue scammers are taking advantage, often pretending to be affiliated with the government or another trusted resource in order to trick distressed homeowners into paying them money for nothing,» said Yolanda McGill, senior counsel for the Lawyers» Committee's
Loan Modification Scam Prevention Network (LMSPN).
Earlier this year, Senator Klein unveiled new legislation aimed at significantly decreasing, and in some cases eliminating, the pervasive practice
of loan modification scams.
~ Senator Klein Releases Public Service Announcement to Alert New Yorkers to Dangerous Loan Modification Scams
The victims of these
auto loan modification scams tell the same story: After paying a fee for the promise of a loan modification, nothing was done to secure the results that were promised.
The new laws aim to crack down
on loan modification scams, extend the number of days banks are required to give notice before foreclosing on a home and demand that banks provide upkeep on foreclosed homes to avoid degradation of property values.
Obtained default judgment and settlement for a veteran who was defrauded out of his home through
a loan modification scam.
The Loan Modification Scam Alert Campaign educates homeowners about the warning signs that indicate that the person or company offering assistance may be a scam.
Since the launch of
the Loan Modification Scam Prevention Network complaint database in February 2010, more than 21,000 consumers have reported foreclosure rescue scams totaling over $ 60 million in lost money, more than doubling last year's figures of 10,000 complaint reports and $ 27 million in lost money.
The Loan Modification Scam Prevention Network is comprised of the Federal Trade Commission, the Lawyers» Committee, NeighborWorks America and dozens of national and local agencies and organizations from around the country, including Fannie Mae, Freddie Mac, the Homeownership Preservation Foundation, the U.S. Treasury Department and the U.S. Department of Housing and Urban Development.
But more recently,
loan modification scams were back in the news as the Federal Trade Commission and the Consumer Financial Protection Bureau in Washington, D.C., jointly announced a coast - to - coast crackdown on a handful of law firms, companies and individuals, accused of collecting more than $ 25 million in illegal fees from distressed homeowners.
From February 2010 to June 1,
the Loan Modification Scam Prevention Network has logged nearly 15,000 complaints from home owners who say they were a victim of a loan modification scam, accounting for about $ 37 million in lost money.