Foreclosure rescue scams continue to snare victims
Some homeowners are still falling for scammers who claim they can rescue them from foreclosure. Among the useful consumer tips from a story on latimes.com:
No. 1: If the company claims to be able to guarantee success in preventing foreclosure, no matter what your financial situation or mortgage details, donâ€™t listen further to the pitch. Nobody can guarantee youâ€™ll get a loan modification, and nobody can guarantee that your lender wonâ€™t pull the plug and foreclose.
No. 2: Although there is no federal law against collection of upfront fees for loan modification assistance -- unlike so-called credit repair operations, through which fees are prohibited until services are completed -- any company asking for $1,000 to $4,000 in advance should be checked out thoroughly by the homeowner before sending in any money payment.
Because these rip-offs have been going on for at least several years, why aren't there laws in place yet prohibiting the upfront collection of these fees?
-- Lauren Beale