Law enforcement officials are teaming up to stop despondent homeowners from needlessly shelling out money in an attempt to save their homes from foreclosure. The Federal Trade Commission said recently it is leading “Operation Loan Lies,’’ a coordinated effort involving 25 federal and state agencies to shut down firms that are deceptively marketing foreclosure rescue and mortgage modification services. These companies often do little or nothing to help homeowners renegotiate their mortgages or stop foreclosures, the officials say.
The FTC said it has brought 14 cases since April, while 23 state attorneys general and other agencies have taken action against 178 companies.
Naturally, scam artists have been feeding off people’s desperation. Companies advertising on radio and TV promise to “rescue’’ homeowners, for a fee. And those fees range from $1,000 to more than $5,000. The companies are taking advantage of the fact that hundreds of thousands of homeowners are still not seeing relief via federal and state programs created to speed up the pace of loan refinances and modifications.
Since the mortgage crisis began, the FTC, state attorneys general, and housing authorities have been pleading with homeowners …
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Tags: Business, finance, Homeowners, money, mortgage
