What if you had a home modification law that everyone ignored? In its 2009 legislative session the State of Nevada passed a law requiring loan modification companies to be licensed. The law, which recently took effect, not only required a license but the companies were also required to post a $75,000 surety bond. It seemed like a good idea at the time. (article)
At the top of the foreclosure rankings for practically the entire housing crisis, it made perfect sense that it would be a hotbed for loan modification
companies. Unfortunately that also lured the scammers. According to the Nevada Attorney General’s office, loan modification scams account for 88% of all housing related fraud cases in the state (article). It was a statistic that ensured that the legislature would act.
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