Monday, November 9, 2009

Loan Modification Companies - Avoid The Scams

Two things. First, if something sounds too good to be true, it likely is. Second, always, always, always verify that a company that's offering to, "make your mortgage problems go away," is licensed and operating legally. Final thought: no one can make the problem "go away."

Here's another story from one of my favorite blogs, the mortgage fraud blog, about yet another loan modification company trying to scam people out of their money.

*** from the Mortgage Fraud Blog***

International Co-op LLC, Meridian, Idaho, has been ordered by the Idaho Department of Finance to cease and desist unlicensed mortgage loan modification activities and illegally charging distressed Idaho homeowners exorbitant upfront fees.

Department of finance director, Gavin Gee, said that the department received complaints from three Idaho homeowners who had paid International Co-op LLC $1,500 to $2,000 on the company's representation that it would assist the homeowners obtain mortgage loan modifications. "On top of the company's failure to obtain a license, the affected Idaho homeowners received nothing for their money and are worse off than they were before," Gee said.Companies offering mortgage loan modification services in Idaho are required to be licensed and, other than a reasonable application fee, are prohibited from charging any upfront fees, said Gee.

"International Co-op LLC failed on both counts." During difficult economic times there are those who seek to prey on distressed homeowners, Gee warned. "The department of finance will continue to take action against mortgage loan modification companies that ignore Idaho's licensing laws and victimize Idaho homeowners in this way."

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