Article by: 911-Foreclosure
To find more great articles like this Visit: Loan Modification News
Communal lawsuits of 189 Companies announced by the California Real Estate Department earlier this July. This is in conjunction with the Federal Trade Commission and the California Attorney General’s stance on stopping the surplus of Loan Modification rescue scams.
Several states such as Arizona, Florida, Nevada and California were hurt the worst during the subprime loan catastrophe. Now the same companies who granted lucrative mortgages to unqualified homeowners are soliciting these same borrowers to modify the very same mortgage they once sold.
Illegal Loan Modification Companies can be usually be identified by charging substantial upfront fees and providing little or no help after receiving the money. Often these upfront fees are a total waste of money and amount to $1,500 – $4,000. Unfortunately for the troubled homeowner, the chance at rescue only leads to dismay and further hardship.This Fox News report shows the owner of one loan modification company clearly undisturbed by the numerous consumer complaints being lodged against his company -Watch the movie by Clicking the Video on the top right or on Youtube
Many of the lawsuits are filed against loan modification companies that charged unsuspecting homeowners upfront fees before they filed and received approvals from the California Real Estate Dept., which requires all companies involved in loan modifications to submit and receive approval for their “advance fee agreement”. Hundreds of companies have violated this regulation.
California’s Department of Real Estate has released a link listing all these fraudulent companies that have been confirmed. http://www.dre.ca.gov/cons_drs.asp.Also here is a list of companies that have engaged in business while not being licensed. http://secure.dre.ca.gov/publicasp/unlicenseddnr.asp
As you can plainly see by looking at these lists, there are probably thousands of companies and individuals that would like nothing better to wring cash out the very same homeowners that can least afford it. Be very wary of any individual that claims he can arrange a modification for you after you pay a large upfront fee. Better to arm yourself with the information we offer here and handle the modification yourself.
