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Robert Longley

Beware Phony Mortgage Audits, FTC Warns

By May 14, 2010

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Looking to take advantage of people facing default on their mortgage or foreclosure of their home, scammers have come up with a new con called "forensic mortgage loan audits." These mortgage monsters claim that for an upfront fee, their audits can help people hold on to their homes. They can't, warns the Federal Trade Commission (FTC).

According to the FTC's Consumer Alert, the scammers claim that backed by "forensic attorneys," results of their mortgage audits can be used to avoid foreclosure, speed up loan modifications and even get loans cancelled. "Nothing could be further from the truth," warns the FTC.

In fact, says the FTC, "there is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they're conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer."

Persons facing foreclosure or defaulting on their loans are most likely to be targeted by the loan audit scammers. Among several other warning signs, FTC recommends consumers be wary of any business that guarantees to stop foreclosures, demands a fee before providing services or urges making mortgage payments to them, rather than the lender.

For real, trustworthy advice, FTC suggests calling the U.S. Department of Housing and Urban Development's Homeownership Preservation Foundation hotline at 1-888-995-HOPE. The hotline is available 24/7 and offers free personalized advice from certified housing counseling agencies.

Also See: FTC Tips and Warnings on Settling Credit Card Debt

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May 14, 2010 at 9:14 am
(1) Storm says:

This is old news. Mortgage Fraud Examiners exposed this problem a year ago in a press release: “Beware of the Latest Foreclosure Rescue Scam–Loan Audits.”

May 14, 2010 at 7:50 pm
(2) Drew Carnevale says:

you may qualify for a loan modification, but would you want to if…
You owe a lot more to the lender then what the home is worth (upside down or underwater).
If you have not already seen the solution to this problem today, the information about what is happening today, results people are getting and how to qualify can be found on this page. http://www.realestatesecretstoday.com/acs_principal_reduction.html

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