Tag Archives: loan modification scam

Congress funding efforts to stop mortgage fraud

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Finally, congress is waking up and doing something about the criminals who are taking advantage of consumers.   The fraud isn’t simply being perpetrated by greedy loan brokers run amok,  it also involves crooked lawyer aiding and abetting these criminals in their effort to extract money from trouble home owners.   The problem is that the organizations like the California Department of Real Estate and California Bar Association simply do not have sufficient man power to hire more investigators, attorneys and accounts  to look into allegations of fraud. With additional funding of $200 Million, more of these cases can be investigated at the local level and more of these crooked players can be taken off the streets.

Finally, Congress is doing something right on a bi-partisan level.

California Bar Association releases names of attorneys under investigation for loan modification fraud

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News Release

As I have been saying previously,  loan modification fraud is pervasive in these difficult times.   Everyone is trying to take advantage of distressed homeowners because they are desperate and are desperately seeking hope.  Hope sometimes in  the form of “attorney based ” operations who basically buy the names of hungry lawyers willing to gamble their licenses for a few bucks.  Well, some of those attorneys have finally been caught and are facing appropriate consequences.

This is fantastic news,  the California Bar Association is investigation its members, and the California Department of Real Estate is investigating its own members as well. It’s about time these licensing organizations finally did something  about reining in their corrupt members who were out there literally robbing these defenseless homeowners looking for hope.

Again, if we can simply warn the general public against giving up-front fees to people (whether they be lawyers, Realtors, loan brokers, etc….) who promise to do wonderful things on their behalf.  No service providing professional should receive a fee before they deliver their service. Even if these “specialists” are telling you they will give you a money back guaranty, do not fall for it.  Once they have your money, getting it back or having them refund it to  you will be an impossible task: much tougher than modifying your loan.

Two San Jose men accused of loan modification fraud

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Click here for the story.

Two San Jose men with an office operating out of Campbell has been accused of bilking over $2 Million dollars from 500 homeowners throughout California promising them principal reductions on their loans.

Please do not pay up front fees to anyone claiming to be able to do loan modifications on your behalf.

Loan Modification Scams

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One thing I hate more than anything is a con artist trying to prey on people who are vulnerable.  And one of the biggest con games out there is the “loan modification specialist” scam.  It is especially bad here in California.   Warning homeowners of these scams has been sort of a personal  crusade for me and I have been writing about it  for a little while.

http://activerain.com/blogsview/873859/beware-of-loan-modification-scams-

http://www.trulia.com/blog/stevemun/2009/06/beware_of_foreclosure_pr

http://activerain.com/blogsview/1162491/loan-modification-scammers-arrested-and-brought-back-to-san-jose-

http://activerain.com/blogsview/1166125/law-enforcement-finds-loan-modification-boiler-room-

I wanted readers of this blog to also be also aware of these scams and who may be perpetrating them.

Here is the list of people whom the California Department of Real Estate has served Desist and Refrain orders/and or accusations resulting from a loan modification and/or foreclosure rescue transaction.   Please read the preamble on the web page for an explanation.

I am just re-posting this list (which is public record)  and make no comments or judgments about these individuals or  their activities.

Please, if someone says they can get your loan modified to stop the foreclosure process BUT WANTS MONEY UP FRONT, PLEASE DO NOT PAY!  The upfront money request is a sure sign this is a scam. The California Department of Real Estate has mandated that “loan modification specialists” registered with them and who may engage in the business CANNOT TAKE MONEY UP FRONT, BEFORE PROVIDING THE SERVICE.