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Many Mortgage Modification Companies are Scams

Posted on Mar 10, 2009 in Foreclosure - Saving Your Home

 Watch out!  Borrower beware!  Your mortgage modification company may be a fraud.  It may be run by the same sub-prime scammerswho got you into this mess in the first place.  People in foreclosure want and need mortgage modification agreements. 

Many very slick companies are springing up promising homeowners quick and easy mortgage modifications.  They will ask for up-front fees of $2000 or more.  They claim to be “MORTGAGE EXPERTS.”  Mostly, they are experts at marketing and taking your money.  Mostly, they are engaged in the unauthorized practice of law.  Mostly they are cynical retreads from the sub-prime mortgage industry trying to sucker you out of your money.  Run away from them!

For example:

  • OUTREACH HOUSING – sued by the Florida Attorney General for unauthorized practice of law
  • WJW ENTERPRISES – non-lawywers working with attorneys on mortgage modifications – attorneys disciplined by the Ohio Supreme Court
  • HOPE ALLIANCE – not related to the legitimate and totally free “HOPE NOW ALLIANCE” accused of fraud by Connecticut Attorney General.
  • AMERICAN MODIFICATION AGENCY (AMERIMOD) – sued in $100 million class action
  • FIRST GOV – FORECLOSURE PREVENTION SERVICES – LIFETIME FINANCIAL CORPORATION – all put out of business by the California Attorney General

What to watch out for:

  1. Copycat names – does it sound like a legitimate agency?
  2. Official sounding names – does it sound like a government agency?
  3. Upfront fees – are they demanding money now even though they haven’t gotten results?

There are many TOTALLY FREE – NOT FOR PROFIT MORTGAGE COUNSELLORS WHO CAN PROVIDE LEGIMITMATE HELP.  Find them in your area at the link here.

Lakelaw can help you defend your mortgage foreclosure case in court while you get the mortgage modification help you need from a legitimate counselling agency.  Steer clear of people who make false promises. 

See our pages about defending against predatory mortgages.

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