August 25, 2019

Another Mortage Loan Scam Brought to Public’s Attention

Last week California Attorney General Jerry Brown cautioned homeowners of a new scam involving fraudulent “forensic audits” of mortgage loans. The forensic loan audits are the latest loan modification scam which takes advantage of desperate people suffering financial troubles amidst a national economic crisis.

Every homeowner is at risk of being taken advantage of. In 2009, the California Department of Real Estate investigated over 2,000 cases of loan modification scam, 350 of which were ordered to terminate their illegal activity. Brown joined the California Department of Real Estate and the State Bar of California to warn homeowners who face the danger of foreclosure to avoid scams such as the “forensic audit,” as they offer no help towards saving their home.

In this particular “forensic audit” scam, which is advertised in newspapers, television and radio, homeowners are led to believe that errors or illegal activity can be found in the way the mortgage was created or within the loan itself. These falsities will supposedly give homeowners adequate leverage to fight the lender in the home loan-modification process and receive help in keeping their residence, all for just an upfront fee. In reality, the audits are of no benefit and have no effect on saving a home from foreclosure. In October of 2009 California made the practice of prepaying for mortgage loan modification illegal, but obviously the practice still continues. As long as there are people suffering financial troubles, criminals will try finding a way to take advantage of it.

According to Jerry Brown’s website, forensic loan audits are not backed by any evidence or statistical data which support the claims that they will help homeowners in any foreclosure relief, even if performed by a licensed, legitimate and trained auditor, mortgage professional, or lawyer.

If you come across a foreclosure-relief service that is quick to offer promises but are short on results, or charge an upfront fee, be wary.

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