The Federal Trade Commission is cracking down on scam artists that blatantly prey upon distressed homeowners facing foreclosure or in need of a loan modification. Recently, the FTC charged a national group of companies based in Palm Beach County, with marketing illegal loan modification services. The FTC seeks restitution for loan modification victims and wants the firms to end to their illegal practices.
According to published reports,U.S. Mortgage Funding Inc., Debt Remedy Partners Inc., LowerMyDebts.com LLC, David Mahler, Jamen Lachs and John Incandela Jr., also known as Jonathan Incandela Jr., allegedly violated the FTC Act and the FTC's Telemarketing Sales Rule and falsely claimed they had a 100% success rate in obtaining loan modifications that would drastically reduce mortgage payments for distressed homeowners.
It is important for distressed homeowners seeking assistance in mortgage modifications or debt relief to be wary of fraudulent scam artists that represent themselves as legitimate firms. Since Jan. 1, 2010, individuals or businesses offering services to negotiate a loan or mortgage modification must be licensed through the Florida Office of Financial Regulation. Also, new disclosures are required such as large-type print on contracts and a three-day rescission period.
In the recent complaint against the Florida based loan modification companies, they allegedly claimed to have loan approvals and affiliations with mortgage lenders> They also claimed that a homeowner would receive a full refund, if they failed to receive a loan modification.
Our Florida Consumer Debt Relief Attorneys, work with distressed homeowners every day, seeking legal help for mortgage loan modifications, foreclosure defense or bankruptcy. Many have spoken to or even hired fraudulent companies that prey upon distressed homeowners seeking immediate help. Before choosing a mortgage modification or debt relief firm, check the company's track record and history to make sure there are no complaints or charges pending against them.
The FTC and many state Attorney General's are prosecuting fraud on loan modification scam artists. If you feel that you have been exposed to mortgage or loan modification fraud, contact the Florida Attorney General's Office, at (866) 9-NO-SCAM (866-966-7226) or www.myfloridalegal.com
Click on the following link to read more on FTC sues Florida loan firm - Tampa Tribune/ Hernando Today