Fraud Investigations Call us for a FREE CONSULTATION 480-374-5146 OR TOLL FREE 1-877-882-9458

I just wanted to take some time to point out some things you can do to avoid becoming a victim of 'loan modification' fraud. Please feel free to comment or post a question.

The economy is in the dumps and the new way to make money for some is to defraud others. Well it isn't a new way, but the incidents of fraud are on the rise. Look at the mortgage industry specific fraudulent scheme below for information and advice:

Loan modifications - Mortgage fraud is at an all time high. But more importantly the 'load modification' programs have sprung up overnight and keep springing up. Sadly this is a great play on the pressures and emotions we home owners are feeling in this mortgage time of crisis. What you should know is exactly what President Obama told everyone on T.V. - "if they are asking for money up front, it is probably too good to be true." 
    What most of you don't know is the majority of the 'loan modification' companies are those companies that used to sell mortgages. Yep that is right! They too had to find a way to reinvent themselves and now they are continuing to prey on people. 
        Even thought the majority, some 80% of you will not qualify for a true 'loan modification' they will sell it you and guess how? You pay them upfront!

Here is how they do it:

• They get you on the phone and ask you if you have 30-45 minutes to go thru a questionnaire to see if you qualify.
• You list everything you have and don't have and what you are paying. Most of them find stuff for you like a sleazy CPA.
• At the end of the questionnaire they tell you that you qualify! Bada Bing, Bada Boom!
• Next comes the benefits; what you can save and the cost of the program. Does this sound good?
• Then they tell you a senior person, lawyer or whoever sounds good will call you back because they will do the legal review of the case. Often this call won't come for a day or so.
• The call comes and this senior leader or whoever covers all the stuff you already did and tells you "I think you have a good chance of getting your loan remodified." See if they guaranteed it, they would be in big trouble!
• He ask you if you want to do the program, they take a credit card payment of a reasonable number like $2995 and you sit around for 60-90 days waiting to hear what is going on because they told you it could take that long.
• Finally you get the word; it is denied!

This happens all to often with these supposed reputable 'loan remodification' schemes. Sure they checked out; they are licensed in the state, they are listed and have all the I's dotted and T's crossed. This is an interior scam and since they are not giving a guarantee, they technically are not committing fraud. However, we have had many clients tell us that they were guarantied a remodification and that is where we can help. Let's look at how to protect yourself.

How to protect yourself:

• Do not pay anything upfront whatsoever! These companies are banking on you paying fees upfront and if they tell you they can't help you because you won't pay the fees then move on and find another. If you absolutely must pay a fee it should always be a nominal one and only to a law firm that is engaged in these programs. You will see a dramatic difference in the law firms fees and a loan modification companies fees.
• Try to get new terms from your own mortgage company before considering a loan remodification program. Yes I know that most the mortgage companies are not willing to modify loans. GREED is the keyword and it is still rampant. But the reality is the average cost of a loan remodification is $1000 to $5000! The cost to sit on the phone with your mortgage company is time and who knows maybe it works out that day.
• Record the conversation! Sounds funny huh? It isn't! We record lots of conversations and in Arizona it is legal as long as one party is aware of it and that party is YOU! Later you can listen to the conversation and see if they made guarantee's, promises or whatever. You have evidence and that is hard to come by! Then it is time to get the authorities involved and if they are unwilling we will be happy to take on your case!
• Check them out! That includes law firms engaged in these programs. Even overnight attorney's have seen the pot of gold with this type of work. Go with a large professional law firm that handles real estate law, not the law firm that does DUI's! Check state licensing since they need that for either type of company. Check BBB, listings, memberships etc. Look at the company structure and it's officers. When the company was formed is a good indication of whether this is an overnight operation. You can hire us to do a due diligence investigation and we will check all that out for you!

I hope this helps you in these types of situations. We encourage you to contact us for a FREE CONSULTATION if you have become a victim of this or if you would like more information. Our site www.wsillp.com/Criminal_Civil.html can give you more information and what types of investigation we perform. Call us locally at 480-374-5146 or toll free 1-877-882-9458.