 |
Home > Foreclosure Lawyers
|
|
|
|
The American dream of owning a home has turned into a nightmare for many people. With the real estate market crashing and adjustable rate mortgages resetting, the reality of losing your home could be right around the corner. eLegalPlans is the best source for affordable legal help during these troubling times.
|
|
|
 |
Recent Developments and Resources
Federal Government Acts to Curb Abuse in "Foreclosure Rescue Services"
Friday, February 5th, 2010
The Federal Trade Commission is proposing a new rule to prohibit 3rd-party mortgage companies from charging upfront fees for foreclosure rescue and modification services.
The FTC brought 28 cases against companies that charge a fee, promising the borrower a modification from the lender. The cases allege these companies failed to provide the services promised - that they misrepresent their affiliation with the government and other housing assistance programs, including the Home Affordable Modification Program (HAMP).
“Homeowners facing foreclosure or struggling to make mortgage payments shouldn’t have to contend with fraudulent ‘companies’ that don’t provide what they promise,” noted FTC chairman Jon Leibowitz. “The proposed rule would outlaw up-front fees so companies can’t take the money and run.”
The new FTC policy would also prohibit the companies from telling borrowers to end communication with their lenders. It would require that the companies notify a potential client of their for-profit status.
“Far too many homeowners have paid up-front fees to bad actors who promised loan modifications but never delivered,” US Treasury Secretary Tim Geithner continued, “I commend the FTC for proposing a strong set of safeguards to protect consumers from these predatory practices.”
Several states already have similar laws in place, forbidding the upfront fees.
In fact, a spokesman for the California attorney general’s office said that complaints of modification fraud increased with the same velocity as foreclosures. In 2007, consumers registered 27 complaints for the year, a number that grew to 163 in 2008. In September 2009 alone, the office heard 158 complaints, totaling nearly 2,000 for the year.
In the story, an FTC spokesperson warned borrowers against the fraudulent practice.
“People should avoid any company or individual that requires a fee in advance, guarantees to stop a foreclosure or modify a loan, or advises the homeowner to stop paying the mortgage company”.
|
|
|
|
|
 |
* All elegalPlans include a $4.95 non-refundable application fee.
The eLegalPlans.com website is administered by eLegalPans.com, Inc., a Florida corporation. Plans and programs offered by eLegalPlans.com are not insurance. Programs offered by eLegalPlans.com provide free and discounted legal services from member attorneys. Plans and programs offered by eLegalPlans.com do not make payments directly to the providers of legal services. The Program member is obligated to pay for all legal services but will receive a discounted rate from those legal attorney's and lawyers who have contracted with the Plan.
|
|
