By Moe Bedard
NECN.com featured a video news release this morning making it very clear that the federal and state governments will be taking aggressive action against fraudulent loan modification firms. Treasury Secretary Timothy Geithner directly addressed the federal government’s position indicating “…we will aggressively pursue individuals involved in mortgage rescue scams.” Both the Massachusetts Attorney General and the Illinois Attorney General also gave serious warnings to loan modification firms and warnings to consumers this morning. Lisa Madigan, Illinois Attorney General said “Please know that paying money up front for mortgage rescue services is a clear sign of a rip off and it is also illegal in most states.” Numerous mortgage rescue companies including Fed Mod were recently sued by the FTC in their efforts to stop mortgage rescue fraud.
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Nice. When will the federal and state governments get serious about mortgage modifications?
I actually knew of a loan modification specialist who offered ‘free houses’. Where is mine? Modification is fairly new and scammers are taking advantage of it. There is no such thing as a free lunch, as they say, and the only reason modification has become an option is because in some cases it is the the only solution that doesn’t leave the bank with an empty condemned house and a family on the streets.
Only hire a licensed attorney for a loan modification!