Mortgage Modification Scheme

February 18, 2011 by  
Filed under Mortgage Modification Scheme

The Rise & Fall of the Mortgage Modification Scheme

Joshua Anderson, Lexington Realty Chief Correspondent, Los Angeles, Ca

Friday, February 18, 2011

Los Angeles- We have all heard the horror stories, desperate homeowners paying thousands of dollars to so called modification specialist, in hopes to save their homes, only to find out they were victims of fraud. Julio Salazar of Falls Church, Va, knows this all too well. When the economic crisis caused his hair-cutting business to plummet last March, he became desperate and was willing to do anything to save his home. That’s when Miami based “Friendly Financial Services” solicited Salazar for a permanent loan modification. He was immediately coaxed into paying a $2,300 attorney fee in exchange for the modification. He was told that CitiMortgage and One West Bank would be contacted by the firm’s attorney, this never came to fruition.

According to the state laws in Florida, homeowners are never supposed to pay upfront fees for modification and as a result of thousands of complaints, a federal ban on collecting upfront fees went into effect on January 31st. Frank Dorman, who is a spokesperson for the Federal Trade Commission, said that “loan modification scams have increased with the recession to take advantage of increased foreclosures.”

When a homeowner has exhausted all of their options there is little to do to salvage the situation. One increasingly popular solution is to short sale. provides in depth solutions to short sales and has a proven track record of success, and best of all there are no fees involved whatsoever. It is the responsibility of the homeowner to do their due diligence on any company before they hire them. In the case of Salazar, he was lucky to have his foreclosure stopped, but not without yet another financial loss.

Housing Assist Coldwellbanker