A recent report, called “Foreclosure Rescue, Inc.” has documented the ongoing problems of fraudulent foreclosure rescue businesses and how these companies have plagued unsuspecting consumers following the housing crisis. The report by the Lawyers’ Committee for Civil Rights Under Law and the Loan Modification Scam Prevention Network says a database maintained by the committee has compiled more than 40,000 homeowner complaints since March 2010 from borrowers who say they have lost $90 million.
BEWARE of the following foreclosure-rescue scams:
1. Your modification is APPROVED! Send your payments to the following address… The homeowner is tricked into believing their lender has agreed to terms of a loan modification and is instructed to pay the “new” modified payment to the bogus company.
2. We volunteer all our hours with no payments. A purported non-profit agency contacts a homeowner, but after reviewing his or her mortgage sends the person to a law firm that the non-profit works with, which then begins collecting a fee.
3. You are eligible to join our lawsuit. Homeowners are told that they are eligible to join a lawsuit against their bank, but they have to pay an upfront fee and make monthly payments after that. The lawsuit is then never filed and the case goes nowhere.
4. Discount for military members and their families. Homeowners hesitant to pay for loan modification of foreclosure-rescue help are told they can use military discounts to get lower prices.
5. Pay us instead of your mortgage lender and we will protect you. Homeowners are told by the “foreclosure-rescue company” to make their mortgage payments to them and not their lender. Months later, they are blindsided by a foreclosure notice and out thousands of dollars.
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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.