Consumer Warning on Repossessed Home Rescue Fraud
California Real Estate Commissioner Jeff Davi has announced that the Department of Real Estate (DRE) issued a consumer alert warning homeowners about fraudulent repossessed home rescue services.
The consumer alert also provided information on how homeowners can identify and protect themselves from con artists selling themselves as experts in loan modification negotiations.
According to DRE Commissioner Davi, the unabated increase in the number of repossessed home has encouraged several unscrupulous people to take advantage of the desperation of distressed homeowners who struggle to keep their properties. The crisis has led to a dramatic increase in fraudulent foreclosure prevention schemes.
Davi explained that the Consumer Alert released by the DRE will educate homeowners to help them avoid fraudulent loan modification schemes.
Industry experts said that many troubled loans have been successfully modified as a result of federal and state programs, laws and regulations that aim to help homeowners protect their properties from becoming repossessed home.
Meanwhile, the California Department of Corporations has released results of its first quarter 2009 survey of mortgage lenders. The study showed that there was a significant increase in the number of successful loan modifications during the first three months of this year compared with the same period the previous year.
According to industry experts, the increase in the number of Californians who were able to remain in their homes is a welcome news to the industry. However, they pointed out that homeowners should also know and understand their options with regards to loan modifications.
They claimed that the consumer alert is a very valuable resource to stop unscrupulous people from taking advantage of the desperation of homeowners to save their properties from foreclosures.
Currently, the DRE has 750 pending loan modification fraud cases, a drastic increase from the 10 posted in July 2008. Furthermore, the DRE filed more than 200 Desists and Refrain Orders and Accusations against loan modification fraudsters since October last year. And the list of fraudsters preying on unsuspecting distressed homeowners continues to grow every day.
According to industry experts, consumer education is the key in stopping any repossessed home rescue fraud. The DRE’s consumer alert provides information to homeowners on where to report fraudulent foreclosure prevention services and available resources for fraud victims to allow them to recover their losses caused by incompetent or illegal operators.
