The government is cracking down on scammers who take advantage of desperate homeowners facing foreclosure.
Federal and state officials are trying to
put an end to fraudulent companies that charge borrowers up-front fees
of $1,000 to $3,000 to modify their loans. For the most part, the
modifications never happen.
These are predatory schemes designed to
rob Americans of their savings and potentially their homes, says
Treasury Secretary Timothy Geithner. We will shut down fraudulent
companies more quickly than before. We will target companies that
otherwise would have gone unnoticed under the radar.
The Federal Trade Commission says 71
companies ran suspicious advertisements and complaints should filed at
the Federal Loan Modification Law Center and Bailout.hud-gov.us, both
based in California, and Clearwater, Fla.-based Home Assure LLC.
Not every loan modification business is a
fraud, but swimming around in those waters are a lot of sharks, says
Jim Carr, chief operating officer at the National Community
Source: The Associated Press, Alan Zibel and Christopher S. Rugaber (04/06/2009)