The Real Deal Miami

Swindlers take advantage of foreclosures

January 15, 2009 11:19AM

Swindlers who used to aim for homeowners’ equity are instead targeting homes facing foreclosure as home equity declines. These defrauders charge upfront fees of up to $3,000 to modify loans, but after collecting the money, they make no effort to modify mortgages. The Federal Trade Commission brought lawsuits against five companies in 2008, and more lawsuits have been brought on state and local levels. The foreclosure service industry is mostly unregulated, making it hard for homeowners to tell whether they are being approached by a legitimate company.