December 5, 2012

FTC Cracks Down on Phony Mortgage Relief Schemes

Foreclosure Home For Sale Sign & HouseThe Federal Trade Commission has brought more than 40 cases since 2008 against companies engaged in offering fraudulent mortgage relief services to distressed homeowners.   These companies prey on homeowners facing foreclosure by promising to assist them in saving their homes and charging them thousands of dollars up front to do so and never bringing them relief.  The FTC issued in November, 2010 the Mortgage Assistance Relief Services Rule which instituted new protections and banned mortgage foreclosure rescue which included loan modification services that required any payments up front on the part of homeowners.  The new rules require a lender or servicer to have a written offer presented to the homeowner that must be accepted before any fees can be collected.

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