Tag: mortgage relief scam

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

FTC Uncovers another Mortgage Relief Scam

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According to the Federal Trade Commission, the company “Wealth Education” deceptively promised mortgage relief services to financially distressed homeowners. The company charged hefty upfront fees and advised homeowners to take steps that ultimately led them into foreclosure.

The Los Angeles-based company has been one of many scammers that used the housing market crash of 2008 to take advantage of struggling homeowners. The company allegedly used a variety of names and sold phony services that promised to lower homeowners’ mortgage payments or refund their money. According to the FTC, the company never made good on its promise. The company charged rates as high as $5,000 and never issued a refund when it failed to provide homeowners with lower mortgage payments.

It is illegal for companies to charge upfront fees for the promise of a mortgage modification. Companies can only charge fees if you have an acceptable written offer from the lender.

Wealth Education was also advising homeowners to stop communication with their lenders. This would delay victims from figuring out the scam and cause them to stop making payments, which in turn resulted in their homes going into foreclosure.

Click here to read more on this latest mortgage relief scam.

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.

Credit, Foreclosures, Timothy Kingcade Posts

Three Red Flags of a Mortgage Rescue Scam

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The housing market crash has given rise to a new type of scam known as the mortgage relief scam, which plagues on vulnerable homeowners. These “mortgage rescue” con artists prey on struggling homeowners, desperate to stay in their homes. Americans have lost millions to these mortgage relief scams in recent years.  In most cases, the scam promises homeowners they will receive a new loan with better terms if they first pay a large, upfront fee. The homeowner then sends payments to the fictitious “loan modification company,” instead of paying their mortgage.

Below are three red flags of a mortgage relief scam:

1. Requires an upfront fee. The company seeks an upfront fee and promises it can get your lender to modify your loan. The Federal Trade Commission’s Mortgage Assistance Relief Services Rule makes it illegal for a company to collect fees before a homeowner receives an offer of relief and accepts it.

2. Faking legitimacy. During the company’s mortgage relief pitch, they often invoke government programs to seem legitimate.

3. Request you sign over the deed to your home. Last but not least, beware if the company asks you to sign over the deed to your house while they process your loan modification.

Click here to read more on how to spot a mortgage relief scam.

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.