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San Jose Cambrian Short Sales - Forensic Loan Audit Scams

By
Real Estate Agent with The Papas Group (DRE #01766524)

A new law in California went into effect on January 1, 2011 that added forensic and other loan audit activity to the definition of "Foreclosure Consultant" making forensic loan auditors subject to strict limitations and a requirement to post a $100,000 surety bond.

"... any person who offers to arrange, or attempts to arrange, an audit of any loan obligation secured by a lien on a residence in foreclosure (unless that person is exempt under the provisions of section 2945.1 (b) of the California Civil Code – exemptions exist for California attorneys engaged in the practice of law and California real estate brokers, among some limited others) must register with the California Department of Justice and obtain and maintain surety bond in the amount of $100,000. If they fail to do so, they have committed a crime and will be subject to prosecution."

Here is a link to the PDF document published by the California Department of Real Estate (DRE): http://www.dre.ca.gov/pdf_docs/ca/ConsumerAlert_ForensicLoanAuditsUpdate.pdf

The advisory also notes that the Attorney General has filed a $60 million civil suit against fraudulent loan auditors.

Consumers should be aware that few, if any, forensic loan audit ads on craigslist.org, backpage.com, and other free classified listing sites are legitimate. These sites are rife with scammers who claim to be able to stop and even prevent foreclosure through a loan audit. There are even ads for classes that purport to teach one to become a loan auditor with fancy seals and certificates.

Save your money and stay away from them!

Owners of distressed properties should engage the services of a professional licensed real estate broker who can help them navigate the many options that are available. A professional will help you choose the right option. You will also need the advice of a good real estate attorney and competent tax advice from a CPA or tax attorney.

Every case has it's unique challenges so choose a strong team to help you work through this solvable situation.

 

Comments (1)

Anonymous
Storm

Mortgage Fraud Examiners exposed these bogus forensic loan audits over a year ago in a press release: "Beware of the Latest Foreclosure Rescue Scam—Forensic Loan Audits." http://www.docstoc.com/docs/51628348/Beware-of-the-Latest-Foreclosure-Rescue-Scam--Forensic-Loan-Audits

Jan 22, 2011 09:01 AM
#1