Feds Are Cracking Down On Mortgage Scams

Good loan modification lawyers spend at least 4 years in college, then 3 more in law school, then pass the bar exam, gain experience for maybe another 20 years or so practicing foreclosure and bankruptcy law and learning litigation skills, and are heavily regulated by their State Bar’s ethical rules. Bad loan modification consultants have a nice web page.

Why on earth would anyone trust their home to a “loan modification consultant?” There isn’t even such a thing in New York. And anyone who calls themselves a “loan modification consultant” in New York is breaking several laws. I’ve blogged on this before.

Now the Feds are finally catching up on these scammers. The AP is reporting that:

The Federal Trade Commission has sent warning letters to 71 companies it says were running suspicious advertisements. The agency also said it filed three new complaints against Northridge, Calif.-based Federal Loan Modification Law Center LLP, Newport Beach, Calif.-based Bailout.hud-gov.us, and Clearwater, Fla.-based Home Assure LLC, and the operators of those companies.

Many of these companies routinely and openly scam homeowners out of their money and leave them without hope during foreclosure. It’s about time the government stopped it.