Foreclosure Prevention Scams: Loan Modifications Specialists Facing Jail Time

With more and more homeowners desperate to stop foreclosure, many are turning to loan modification specialists to speed the process along. As discussed in the post, Home Loan Modification Scams to Be Aware Of, while there is free government help available, it is often so time consuming and so difficult to get that many turn to for-profit agencies.

The home loan modification scams are growing fast, which is explained by the fact that more than 2 million homeowners faced foreclosure last year. That number is only expected to grow this year.

Where the the justice system used to in essence turn a blind eye to this crime, many jurisdictions are now putting laws on the books that call for jail time — up to 20 years in some cases — for those who engage in fradulent business practices like this. Read more in Foreclosure scam artists rarely face jail time.

Reputable Loan Modification Companies

There are reputable, for-profit loan modification companies out there. But, you must due your due diligence in ferreting them out. And, just because they have an ad on TV does not mean that they’re reputable.

Links to Reliable Info on How to Avoid Foreclosure Scams and Mortgage Modification Scams

CNN.com article Avoiding foreclosure rescue scams

American Chronicle article How To Avoid Foreclosure Scams That Can Cost You Your Home

The Office of the Comptroller of the Currency (OCC) article OCC Consumer Tips for Avoiding Foreclosure Rescue Scams

From the Attorney General’s Office in Delaware, How to Avoid Foreclosure Scams (pdf file)

From the Federal Trade Commission, Foreclosure Rescue Scams: Another Potential Stress for Homeowners in Distress

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