Mortgage Rescue: Just Another Scam?

28 Nov Mortgage Rescue: Just Another Scam?

Mortgage rescue outfits are likely to be just another scam taking advantage of your desperation.The New York Times recently editorialized on November 24, 2008 in this way: “Predators of every sort have regrouped and returned to their old ways, this time as loan-modification companies, inserting themselves between hard-strapped homeowners and banks, offering to work deals — for cash up front.”

Even “legitimate” mortgage modifications can hurt you far worse than another alternative, since any immediate savings in reduced interest or deferred payments might be added on to the end of the loan, with another 30 years’ of interest on those additions, of course.

See alsoKevin Gipson’s June 1, 2008 post about an NPR report on deeding one’s house to the scammer with rent-back and repurchase “promise,” or Carmen Dellutri’s April 29, 2008 report about the Florida Attorney General suing a foreclosure consulting service calling itself “Law and Associates, LLC,” or Rachel Lynn Foley’s July 29, 2008 report about the Missouri Attorney General suing Private Funding Solutions, Access Mortgage and Financial Corp, and other parties. There are my previous posts of March 12, 2007 and September 30, 2007 about Foreclosure Assistance Solutions, LLC being sued by the Florida Attorney General and its assets having been frozen by the Texas A.G. (These posts are on our related Bankruptcy Law Network site.) There even was a February 18, 2008 post from Susan Robicsek on a “Law and Order” episode.

Be careful. Don’t trust. This is your home.

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L. Jed Berliner practices exclusively in consumer bankruptcy, foreclosure defense, and related consumer protection litigation such as credit card defenses and suing debt collectors. He established his Springfield, MA practice in 1988. Attorney Berliner is a regular and active contributor to the Bankruptcy Law Network, the Bankruptcy Roundtable, and the National Association of Consumer Bankruptcy Attorneys, three specialized consumer bankruptcy forums on the Internet, and is an informal mentor to regional practitioners. He is recognized by his peers as an expert in consumer bankruptcy issues. He thoroughly enjoys being rated "excellent" in his client surveys.

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