Wednesday, January 18, 2012

New Foreclosure Rescue Scheme

Escalating foreclosures provide criminals with the opportunity to exploit and defraud vulnerable homeowners seeking financial guidance. One of the newest foreclosure rescue schemes, according to the Federal Trade Commission (FTC), is known as a "forensic loan audit." In exchange for an up-front fee of several hundred dollars, so-called forensic loan auditors, mortgage loan auditors, or foreclosure prevention auditors who are backed by forensic attorneys, offer to review mortgage loan documents.

The documents are reviewed to determine whether a homeowner's lender complied with state and federal mortgage lending laws. The "auditors" claim you can use the audit report to avoid foreclosure, speed up the loan modification process, reduce the loan principal, or even cancel the loan. According to the FTC and its law enforcement partners, there is no evidence that forensic loan audits will help get a loan modification or any foreclosure relief. To make their pitch, this new breed of foreclosure rescuer looks for homeowners in distress, especially those already facing foreclosure.

For more information see the Consumer Affairs website at http://www.consumeraffairs.com/news04/2011/12/dont-fall-for-a-loan-audit-scam.html

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