Beware of Fraudulent Mortgage Loan Programs

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Caution! Some Loan Modification Programs are Fraudulent!

A bankruptcy filing could be an important part of qualifying for a legitimate mortgage loan modification. If you have too much medical, credit card and vehicle payment debt to afford even a modified and reduced mortgage loan payment, your modification could be denied for lack of feasibility. Completing a bankruptcy case before applying for a modification could be something to consider under the right circumstances.

Before pursuing a mortgage loan modification, it is always a good idea to consult and strategize with an experienced local attorney, particularly an attorney that is experienced in the areas of bankruptcy, consumer protection, mortgage modification, and debt issues. It is your home and your future that is at stake – be careful and always consult with a reputable, experienced attorney before wasting time and money pursuing a “too good to be true” mortgage modification offer.

Beware of mortgage loan modification swindles! There are many mortgage modification swindlers out there. As of April 6, 2009, the first wave of US government enforcement commenced to shut down mortgage loan modification swindles. There certainly will be more such enforcement actions to come.

The US Federal Trade Commission announced on April 6, 2009 that it had commenced five law enforcement actions against operations using deceptive tactics to market their mortgage modification and home foreclosure relief services, including firms that marketed their “services” by giving the false impression they were affiliated with the federal government. This brings to 11 the number of loan modification and mortgage foreclosure rescue swindles brought by the FTC in the last year, as of April 6, 2009. More than 20 state law enforcers also have taken actions against companies engaged in these types of deception, including 22 brought by Illinois Attorney General Madigan.

The FTC also announced on April 6, 2009 that it has sent warning letters to 71 companies who may be deceptively marketing mortgage loan modification or foreclosure rescue services. The FTC identified these companies through a nationwide review of Internet and other advertisements and warned these companies that their ads may violate federal law. State law enforcers also have sent warning letters to companies that are potentially engaging in such illegal practices, including more than 60 warning letters sent by Illinois Attorney General Madigan.

On April 6, 2009, the US Federal Trade Commission announced five law enforcement actions targeting perpetrators of mortgage-related swindles. According to the FTC, these schemes typically operate in the following way. First, they use terms like “guarantee” and “97% success rate” to mislead consumers about the mortgage modification or foreclosure relief services they can provide; they charge up-front fees for these “services” – fees legitimate nonprofit organizations do not charge – and they use copycat names or look-alike Web sites to appear to be a nonprofit or government entity. Often, after collecting the fee, these companies do little or nothing to help consumers.The FTC maintains a website containing the press release of April 6, 2009, reciting that the FTC is seeking, or has already obtained, a temporary restraining order to halt the defendants’ illegal conduct.

Do you want your mortgage loan modification to succeed? We encourage you to call us for a free 30 minute consultation about your debts prior to commencing any request for loan modification. We will try to help you avoid mortgage loan modification swindlers. Under certain circumstances, a bankruptcy filing could be helpful to the ultimate success of your mortgage loan modification request.