Taking aim at mortgage scams
FTC cracks down on foreclosure rescue swindlers
January 22 2009 - You’ve probably seen the incessant TV and Internet pitches –– “we can stop your foreclosure!” –– offering hope to millions of homeowners who are either behind on their mortgage payments or heading to foreclosure.
But a new settlement from the Federal Trade Commission sends a blunt warning to the fast-growing foreclosure fix-it industry: If you take consumers’ cash upfront, and promise them you’ll save their homes, you’d better be able to deliver.
Otherwise you may be charged with running a scam operation that violates federal law and exploiting the country’s mortgage delinquency mess for your own private gain.
The FTC filed suit against Clearwater, Fla.-based Mortgage Foreclosure Solutions Inc., charging the company with operating a “scheme to sell purported mortgage foreclosure services to consumers” nationwide through six Web sites, but virtually never actually preventing foreclosures by lenders.
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