These scammers prey on people in trouble. We run into them over and over and it’s always the same.
They promise to help homeowners who are behind on their mortgages get out from under and modify their mortgages. Instead, they take money, offer little or nothing, and homeowners are left deep in debt and in serious jeopardy of losing their properties.
The Federal Trade Commission (FTC) went after a group of individuals and companies operating out of Nevada and California.
It asked a Federal District Court in Santa Ana, California to stop them from allegedly deceiving homeowners. The FTC says the group advertised on the Internet, TV and radio and falsely claimed it would provide legal help to “save consumers’ homes from foreclosure and lower their mortgage payments.” It charged illegal upfront fees of $2,000 to $4,000.
A temporary restraining order shuts the operation and freezes the defendants’ assetss. The FTC says, “Three individuals – Ratan Baid, Madhulika Baid, and William D. Goodrich – and seven companies falsely promised lower monthly payments and interest rates, and conversion of adjustable-rate mortgages to fixed ones. Apparently, many consumers who called toll-free numbers were falsely guaranteed a loan modification that supposedly would make their payments more affordable, that they would get results within 60 to 90 days, or that Goodrich, an attorney, would use his impressive legal experience on their behalf.”
While the case works its way through the courts, the people named in the complaint are barred from collecting advance fees for mortgage modifications.
What Do I Do About Foreclosure and download the free guide.
4 Tips to Avoid Mortgage Modification Scams and download the free guide.