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Foreclosure Scammers Ordered to Cease and Desist

Posted By admin || 22-Jul-2009

Bankruptcy Scam
According to an article in the Star-Telegram , prosecutors nationwide have filed 189 cease and desist orders against foreclosure scammers who market themselves as "loan-modification consultants." Prosecutors accuse these foreclosure scammers of bilking homeowners out of thousands of dollars while falsely claiming that they could negotiate with mortgage lenders to make mortgage payments more affordable.

The article said:

"Leibowitz used the announcement to put scam artists on notice and urged homeowners to protect themselves from being exploited. He said fraudulent loan-modification consultants are "full of hollow promises designed to fatten the pockets of criminals and con men."

Many Texas homeowners facing foreclosure have already fallen victim of Houston-based Excel Loan Modification (aka United Servicing and Bell Investments) who asked homeowners to stop paying their mortgage in order to pay fees of up to $1500 for their foreclosure/loan modification services. Unfortunately for those Texas homeowners, this company (and other foreclosure scammers) failed to deliver on their promises of negotiating more affordable mortgage payments, leaving many homeowners even more vulnerable to foreclosure.

This is a warning to all homeowners facing foreclosure and/or seeking mortgage modifications: Be very careful when dealing with companies that charge upfront fees for "loan modification services" or request that you send them your mortgage payments to "pass on" to lenders. If you are facing foreclosure or can no longer afford your mortgage you may be able to get help using bankruptcy. To find out how bankruptcy can help you save your home, contact a Dallas-Fort Worth bankruptcy attorney today.

Categories: Foreclosures
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