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Foreclosure rescue scams continue to snare victims

September 6, 2009 |  6:00 am

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, don’t listen further to the pitch. Nobody can guarantee you’ll get a loan modification, and nobody can guarantee that your lender won’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

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