The DRE has opened more than 4,500 cases that involve loan modification complaints since 2008, as well as 88 accusations accusing 159 real estate professionals of violating real estate laws in connection with offering loan modification services.
The most popular loan scam: Guaranteeing a loan modification in exchange for an upfront fee. Once the fee is paid, the scammer does little or nothing to obtain a loan modification.
“With so many home owners facing financial hardship, foreclosure rescue and loan modification scams are very prevalent and consumers need to be on guard,” says DRE Commissioner Jeff Davi. “We have seen many variations of scams, but most all involve the collection of illegal advance fees. If someone asks for money upfront, that is a huge red flag.”
The DRE is telling customers to avoid becoming a victim of a scam by never paying an upfront fee for loan modification services and being skeptical of guarantees They are encouraging home owners to contact a HUD approved counseling agency, which can provide loan modification services for free.
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