The FTC is seeking an emergency court order to stop the operations of the Federal Loan Modification Law Center in Irvine, California.
The new snake-oil salesman: the mortgage relief scammer.
Mortgage and foreclosure scams are running rampant. From TV, to radio to internet advertising, consumers are inundated with companies promising to help save their families from foreclosure. According to US Attorney General Eric Holder, about 2100 mortgage fraud cases are currently being investigated by the FBI - up 400% from 5 years ago. In addition, the FTC has sent warning letters to 71 companies it says were running suspicious advertisements and has filed five new civil cases to halt illegal loan modification scams.
What’s being done to educate consumers about these mortgage scams? Starting April 10, the Federal Reserve will be airing 30-second PSAs in movie theaters! The PSA’s are planned to run for 7 days in 14 of the cities hardest hit by foreclosure.
But these ads are too little, too late for some. Have you been affected by a mortgage scam? Tell us what company - and help spread the word about these malicious scammers!
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April 9th, 2009 at 11:52 pm
The biggest mortgage scam that I’m hearing about is when people sign over their deed to a company who promises to help the homeowner re-build their credit so that they can buy it back after a year. Even though there is so much publicity and warning about this particular con, I’m still talking to people who fall for this.