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6 Way To Spot A Mortgage Modification Scam and A List of Companies Who Have Been Accused

June 19, 2010

I’ve received several calls from homeowners facing foreclosure but uncertain about the next step because they have paid a third party to negotiate on their behalf.  Many of them are sometimes days before foreclosure and they haven’t gotten any resolve from the mortgage servicer, so now they panic.

A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure.

A company/person guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise they will try their very best to help you.

A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. The minute you have trouble making your monthly payment, contact your mortgage lender.

A company pressures you to sign over the deed to your home or sign any paperwork that you haven’t had a chance to read, and you don’t fully understand. A legitimate housing counselor would never pressure you to sign a document before you had a chance to read and understand it.

A company claims to offer “government-approved” or “official government” loan modifications. They may be scam artists posing as legitimate organizations approved by, or affiliated with, the government. Contact your mortgage lender first. Your lender can tell you whether you qualify for any government programs to prevent foreclosure. And, remember, you do not have to pay to benefit from government-backed loan modification programs.

A company/person you don’t know asks you to release personal financial information online or over the phone. You should only give this type of information to companies that you know and trust, like your mortgage lender or a HUD-approved counseling agency.

Contact an organization like Neighborworks http://www.nw.org/network/home.asp NeighborWorks America is a national nonprofit organization created by Congress to provide financial support, technical assistance, and training for community-based revitalization efforts.

Here are eight of the companies that have been accused of offering bogus modification or foreclosure prevention services:

Making Home Affordable

Federal Loan Modification Law Center

Apply2Save

New Hope Modifications

The Rodis Law Group Inc.,

America’s Law Group Inc.,

The Financial Group Inc

Fedmortgageloans.com.

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4 Comments leave one →
  1. June 19, 2010 2:41 pm

    We were scammed by “Americian Mortgage Auditors”. Please add this company to your scam list.

  2. coolmomwith2 permalink
    October 22, 2010 4:52 pm

    Anybody heard of Fidelity LLC?

  3. November 7, 2010 10:41 am

    FRAUD ALERT! We were scammed by Greg Lomba of Accelerated Commercial Services LLC Pleasanton CA Do not give him your money. He has many fake references that he pays willing to tell you how he saved their house from foreclosure. His company is fake too. The web site is http://www.acrlm.com He changed it from Inc. to LLC fraudulently. There is no such company listed as a California Corporation. He also shows you he is a CA Licenced Real Estated Agent but his license was revoked in 2008 so he is not authorized to even do modifications.

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