FTC Cracks Down On Foreclosure Fraud Operation

As many homeowners continue to have trouble meeting their mortgage payments, foreclosure scams have proliferated.


Saying it is cracking down on foreclosure scams, the Federal Trade Commission (FTC) broke up a national operation based in Florida that it says targeted financially distressed consumers using direct mail, the Internet, and telemarketing.  These borrowers were falsely promised loan modifications.

Giving an idea of how pervasive these foreclosure scams are, the state of Florida foreclosure prevention website, the Hardest Hit Fund, begins by warning about copycat websites. Website visitors, the Hardest Hit Fund website warns, should verify that the website is the official site before providing personal information. Application for and participation in the program is free.

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Utah Man Taking On Bank Of America In Loan Modification Dispute

Many Americans have applied for the federal government's loan modification program, meant to keep them in their homes. Instead, less than a quarter of those who signed up have gotten any help.

The banks are being sued by several states and consumer class action lawsuits for their failure to follow through. But a Pleasant View man is standing up to Bank of America on his own.

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BofA Creates New Unit, Names Foreclosure Czar

Bank of America Corp appointed on Friday a new foreclosure and loan modifications czar, and created a new unit to oversee problem home loans in a bid to sort out its ongoing foreclosure issues, becoming the first large U.S. bank to do so.

The new unit creates a seventh major division at the bank reporting directly to Chief Executive Brian Moynihan, an indication that the largest U.S. mortgage servicer is attempting to be more aggressive in resolving its problem loan portfolio.

Analysts said the move is a signal that major U.S. mortgage lenders have not yet turned the corner on dealing with the problem home loans on their books.

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Homeowners Left In Lurch After Loan Modification Company Suddenly Closes

The sudden closure of a Utah County loan modification company has left several clients in danger of losing their homes.

The doors of Modify Utah's American Fork office located on east Utah Valley Drive were shuttered this week, leaving clients wondering what will happen to their homes. The company had been in the business of "assisting customers to obtain loan modifications of their home mortgage loans."

According to a letter from the firm's attorney, Paxton Guymon, Modify Utah ceased doing business for several reasons, including "a significant portion of (its) customers have failed or refused to pay ... for services provided, recently imposed restrictions impeding the company's ability to process or receive payments and lien holders unwillingness to work with loan modification companies."

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Foreclosures.com Founder Faces Auction of Fair Oaks House

Alexis McGee, founder of Foreclosures.com, made a national reputation by helping investors find and buy distressed properties whose owners were struggling to stave off foreclosure.

Now those investors might have an unlikely prize in a large new Craftsman-style home in Fair Oaks that's scheduled for sale on the courthouse steps early next month.

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Foreclosure and Loan Modification Myths and Legends – Why You Can Keep Your Home and Afford It!

I have been in the real estate and mortgage industries in some way or another for most of my adult life. There is always some phases that the economy is going through that affects how business is done when it concerns buying, selling and mortgaging real estate. Up until 3 years ago the housing industry was just going up and up and up. There were Bankers lending; Builders building; Realtors real estating; and Buyers and Seller buying and selling. When business was good there were always people telling some story about how things were done, and what they were describing that was plain wrong. I’ve always called it Myth and Legend.In bad times it is much worse.

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Homeowners Say Loan Mods Led Them To Foreclosure

Grocery store owners William and Esperanza Casco were making enough money to stay current on their mortgage, but when JPMorgan Chase & Co. offered a plan that reduced their payments, they figured they could use the extra cash and signed up.
The Cascos say they never missed a subsequent payment, so they were horrified when the bank decided the smaller payments weren't enough and foreclosed on their modest Long Beach home.
Their story is echoed across the country by people who claim — some in lawsuits — that banks didn't live up to their end of the deal when they agreed to trial mortgage modifications.

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Urgent mortgage moves need not destroy credit scores

Financially stressed homeowners looking to cut their mortgage payments through a loan modification, short sale or principal reduction under one of the Obama administration's programs needn't wreck their credit scores in the process.

In fact, according to a new study covering more than 400,000 active consumer credit files, some modification options can increase your scores rather than depress them. Other alternatives to modification -- such as foreclosure and bankruptcy filings -- can tank your scores and take years to rehabilitate.

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