Tag Archives: Federal Trade Commission

Four fair housing organizations have released their findings of a year-long undercover investigation of 80 loan modification companies, which reveal a host of corrupt practices scammers employ to target homeowners in distress. According to the report, 55 percent of loan modification companies required an upfront fee to start work or a low initial fee to conduct minimal work, such as reviewing loan documents. Twenty-four percent advised or encouraged homeowners to stop making mortgage payments or stop contacting their lenders.

Deceptive mortgage relief marketers continue to prey on financially distressed homeowners, but one such company has been stopped in its tracks. Home Assure, LLC, has been charged by the Federal Trade Commission for deceiving consumers with promises that it could save their homes from foreclosure. To settle these charges, the company must refund customers $2.4 million, and it can no longer sell mortgage loan modification or foreclosure relief services.

As part of an ongoing effort against scams that target financially distressed consumers, the Federal Trade Commission (FTC) has banned several marketers from selling mortgage modification or foreclosure relief services. According to the FTC, the marketers allegedly charged homeowners up-front fees and falsely claimed they could get their mortgage modified or prevent foreclosure on their homes. Settlements regarding these allegations have been met through three separate actions.