Whenever a homeowner is struggling and looking for a way to stay on top of their financial obligations, they may reach out online for help. One option that has worked for homeowners is to seek a loan modification to lower a high mortgage payment. However, Florida homeowners should be aware of potential scams related to some loan modifications.
Recently, a man was caught and is being criminally prosecuted for a loan modification scam that he apparently perpetuated on others. The man hosted a website touting his books and owned an online ministry. He used this outlet as a means to get homeowners to trust him to secure loan modifications so they could stay in their homes.
It was discovered that he received money from victims who were facing foreclosure. He allegedly did not direct this money toward the banks or toward payment of the mortgages. It’s claimed that he simply kept it for himself. He is accused of selling about 100 mortgage loan modification programs without bringing about results for the homeowners who paid him. He faces a number of felony charges for defrauding the homeowners.
It can be easy to fall prey to loan modification scams when homeowners are struggling and desperate for quick results or a way to simply stay in their own home. Florida homeowners and all others should be aware of the potential scams and know first-hand how the loan modification process works. Homeowners may also benefit from discussing or investigating options such as bankruptcy protection as a means of regaining their financial footing and possibly even staying in their homes.
Source: housingwire.com, “Man uses fake religious business in loan mod scam“, Trey Garrison, April 4, 2014