Foreclosure rescue and mortgage modification scams are a growing problem. Homeowners must protect themselves so they do not lose money—or their home.
Scammers make promises that they cannot keep, such as guarantees to “save” your home or lower your mortgage, often times for a fee. Scammers may pretend that they have direct contact with your mortgage servicer when they do not.
What are some of the latest scams?
The “mass joinder” and class action solicitations are the latest mortgage rescue frauds and are extremely good at selling false hope to homeowners. As a result, the California attorney general and the state’s Department of Justice have taken down a fraud ring including Philip Kramer, the Law Offices of Kramer & Kaslow, two other law firms, and other attorneys and individuals working together to defraud homeowners across the country through deceptive marketing of “mass joinder” lawsuits. “The defendants in this case fraudulently promised to win prompt mortgage relief for millions of vulnerable homeowners across the country,” said Attorney General Harris.
Scammers have also followed up with schemes related to short sale transactions and forensic loan audits, The California State Bar and the California Department of Real Estate (DRE) recently issued several consumer alerts surrounding Class Action and Mass Joinder lawsuits. Here is a link to those warnings:
CA State Bar Warning: http://www.calbarjournal.com/April2011/TopHeadlines/TH2.aspx
DRE Warning: http://www.dre.ca.gov/pdf_docs/ca/ConsumeAlert_WarningreMassLitigation.pdf
Note that in California there are very strict rules against people who for money will perform any of the following: stop or postpone the foreclosure sale; obtain a forbearance from a beneficiary or mortgage; assist the owner in exercising CC §2294c reinstatement rights; obtain an extension of the loan reinstatement period; obtain a waiver of an acceleration clause contained in loan documents on a loan secured by a deed of trust or mortgage on a residence in foreclosure; assist the owner to obtain a loan or advance of funds; avoid or ameliorate the impairment of the owner’s credit resulting from a notice of default; save the owner’s residence from foreclosure; or assist the owner in obtaining the surplus funds from the foreclosure sale.
- Loan Modification Help
- Principal Balance Reduction Programs + HARP 2.0
- Bankruptcy and Loan Modification
- Foreclosure and Loan Modification
- Beware of Loan Modification Scams