Mortgage Modification Scams in the market today … according to Financial Crimes Enforcement Network
“First, subjects conned homeowners into signing quit-claim deeds to their properties, then sold homes from under the former owner to straw (fabricated) borrowers; the homeowners subsequently received eviction notices. Second, other scammers falsely claimed affiliations with lenders to convince distressed homeowners to pay large advance fees for modification services, but failed to take any action on the homeowners’ behalf.”
Some other types of fraudulent activity reported by FinCEN involved debt elimination schemes. Scammers would provide homeowners with documentation that falsely interpreted federal laws to contest mortgages, convincing the homeowner that their loans were “illegal” and therefore should not be paid. The reports seen by FinCEN also noted self-proclaimed loan modification specialists who targeted homeowners not actually in danger of foreclosure. These victims were lured by promises of access to funds from federal programs.
Don’t let a con artist fool you, or someone you know, into an even worse financial situation by a predatory mortgage scheme. If you have questions about avoiding mortgage scams, or if you need legitimate, professional help with avoiding foreclosure, know that real help is available.
Call Kathleen Daniels, San Jose Short Sale Specialist, today @ 1-800-972-1822.