Our firm is investigating cases for deceptive and illegal practices involving mortgage modification and foreclosure rescue scams.

Foreclosure filings against homeowners by investors, servicers and lenders is at an historic high. Loan modification and foreclosure rescue companies find homeowners in distress in the public court record as well as direct and indirect solicitation. These companies claim they can assist consumers with obtaining a mortgage modification from the servicer, investor or lender that will modify an existing mortgage to reduce the monthly payment. Other companies offer to arrange a “lease-back” or “repurchase” of your home, claiming they will pay your mortgage and rent the home back to the consumer. In those cases, the company or individual convinces the consumer to sign the deed over and give the scammer title.

Loan modification scammers charge up-front or advance fees and promise that they will negotiate with the servicers, lenders or investors to lower their mortgage interest rates, lock in fixed rates, get late fees and past due payments forgiven, and even reduce principal balance. Many of these companies lure consumers through false and misleading tactics, falsely claiming to have high success rates, and falsely claiming to have a special relationship with the homeowner’s lender. In many cases, the companies are of little or no help to obtain any benefit to the consumer.