Stopping a Phony Mortgage Lender

Many homeowners struggling to make mortgage payments look for practical payment alternatives: they might try to convince the lender to modify the loan terms, ask for a temporary reduction, or maybe try to refinance the loan. The Federal Trade Commission’s settlement with American Mortgage Consulting Group illustrates one alternative to stay away from: paying a company a fee to modify a mortgage before they deliver the results they promise.

The case is part of the FTC’s Distressed Homeowner Initiative, focused on shutting down sham foreclosure rescue schemes, bogus mortgage modification offers and other phony deals. According to the FTC’s complaint, American Mortgage called homeowners nationwide and allegedly promised to lower their monthly mortgage payments substantially in exchange for up-front fees of $1,495 to $4,495. The company allegedly gave the impression they were associated with the federal government, falsely claimed that most of their customers got mortgage modifications, and assured homeowners they’d almost certainly get modifications that would reduce their monthly payments. But in general, alleged the FTC, the hundreds of consumers who paid American Mortgage those fees never got a loan modification – or a refund of the fee they paid.

The FTC enforces the Mortgage Assistance Relief Services (MARS) Rule, which makes it illegal for companies to collect a dime - let alone thousands of dollars - until they’ve given their customers some key information: namely, a written offer from their lender or servicer that the customer decides is acceptable and a document from the lender or servicer that describes the key changes to the mortgage that would result if the customer accepts the offer. Oh yes, the companies also must remind the customers of their right to reject the offer without having to pay any fees at all.

If you're having trouble paying your mortgage or have gotten a foreclosure notice, contact your lender immediately. You may be able to negotiate a new repayment schedule. Legitimate resources are available to help you save your home, including housing counselors who can talk knowledgeably about a variety of foreclosure prevention options like reinstatement and forbearance.

Please let us know if you paid a fee in advance to a company that claimed it would modify your mortgage but didn’t come through. Your reports help law enforcement find and stop the scammers.

Foreclosure Rescue Scams

Tagged with: foreclosure, mortgage, scam
Blog Topics: 
Homes & Mortgages

Comments

I been scam by the following companies americn resort International,0yester bay beach resort,concord servincing Inc.,pearl development,IntervaL International sterling bank and trust co.of $60.000,dovennmuehle mortgage of $10,000 nizan ford corp.0f $24.000

I paid a company in Utah called Preferred Law $3000 because they said they could get my loan modification down by another $600 per month and get the 4% interest down to 2% interest. Four months later they said they could not help me. I lost the loan modification I had received and made one payment on. I now cannot get that modification back. And they could only give me back $700. The Utah State Bar said Benjamin Holden, the attorney of Preferred Law violated several laws according to my complaint. I would like the FTC to investigate this company as well.

what laws were violated? we've been mislead by them as well.

The Mortgage Assistance Relief Services (MARS) Rule makes it illegal for companies that provide mortgage relief services to charge you before they’ve given you a written offer from your lender and you’ve accepted the offer. Here's more info about Mortgage Relief Scams. If this has happened to you, file a complaint about it at ftc.gov/complaint.

I was also scammed by Preferred Law! Paid them $3,900 for doing absolutely nothing positive for my loan modification. They actually delayed my sitch by 6 months causing my delinquency to total upto $40K causing us to lose our home of 15 years! They refuse to refund. Same promises made to me- lower interest rate to 2% and principal reduction since loan was upside down. I would like the FTC to stop these criminals!

i fell for one of these scammers in florida.i am from virginia. i'm not sure if the company is still in business.it was "the defense law group" name to call was randy holland and karen gill. the telephone number was 877 814 4616. i was scammed out of 1200.00 and got nothing.

i fell for one of these scammers in florida.i am from virginia. i'm not sure if the company is still in business.it was "the defense law group" name to call was randy holland and karen gill. the telephone number was 877 814 4616. i was scammed out of 1200.00 and got nothing.

we have been contacted by a law firm in Laguna HILLS
Cal. They say they can save us thousands on are home.
They want 3,400. to close this deal. Their name is
Main Law Professional Corporation. Law Offices of James Conkey
23046 Avenida de la Carloia, Suite #600
LAGUNA HILLS, cA 92653

What was the outcome? Are they legit? They just contacted me. Thanks Julian 941-232-9959

I just received a letter in the mail that appeared to be from citibank, but upon closer inspection was from Main Law, PC offices of James Conkey (they actually spelled his name "conckey" in the fine print so i had trouble tracking it down). I was pretty tempted to call as things aren't going so great. Thanks for posting your comment, otherwise I'd be on the phone right now most likely losing more of my shirt than I've already lost.

Hi, did you really find out if this Main Law Pc firm is in fact a scam? They have already taken money from my dad, and he is about to invest with them further, but after I started looking into it more, I came across this. Is there anyway you can help me???

I called and spoke with someone named Andrea at Main Law Firm and though she did not request any money today, she did request pay stubs, bank stmts, tax return from '12 and a utility bill. At what point did they want money from you? I am in the banking industry and am fully aware of scams "lawyer" but called out of curiosity. Sounds like they will want a nice little check before doing anything of value! Glad I read this as I will be told they can help and then I will pay and get rolled for a few thousand dollars!

Dan, Did you work with Main Law PC? What was your experience. They just contacted my yesterday! anuything is helpful! Please I do not want to lose my house - thnak you very much!

Cathy - thank you very much for starting this thread. Please provide more information. Did you or anyone dealt with Main Law PC succesfully? Appreciate all the help. I was just contacted by them yesterday!

I just found out that someone lost $3500 with Main Law Group and they never asked them to sign any documents, wonder if they ever did anything at all?!

Main Law charged me $3500. Summited incorrect information to my lender, said I was denied and is not responding to my request of a partial refund.

All I have to say is DON'T DO IT! I had one loan mod go through with another company 5 years ago, but this time it was a bad experience all the way around. So many mistakes and errors and lies. Save your money and keep looking for REAL legitimate help!

Call 1-888-995-HOPE for free personalized advice from housing counseling agencies certified by the U.S. Department of Housing and Urban Development (HUD). This national hotline – open 24/7 – is operated by the Homeownership Preservation Foundation, a nonprofit member of the HOPE NOW Alliance of mortgage industry members and HUD-certified counseling agencies. For free guidance online, visit www.hopenow.com.

Also, check out the federal government’s Making Home Affordable website for information on mortgage modification programs.

I got scammed in a foreclosure rescue scenario. I was promised a refinance provided I pay twenty thousand dollars. Because of the stupid DC statutes of limitations, I lost the house and everything in it!

I find a false sense of security in our great country and I won't be silent. Insurance companies are taking in thousands of dollars in premiums leaving the consumer without recourse. If your company breach it's agency contract with failure to act or protect property insured; holding a claim open for over 2 years and of filing false statements to vendors about payments what can we do we feel like someone broke into our home we are so vulnerable

Has anyone heard of American Home Relief? They are promising a modification for $1,500 down and a total of $4,200. Is this legit?

Has anyone been helped by Main law group with their mortgage?

Im working with Main law and will post a new comment as soon as I talk to them today. I have a comment all ready typed and ready to post, just want to give them 1 last chance to make good on their Principal Reduction request.

Main Law is a scam. They make unbelievable promises that they cannot keep. DO NOT USE OR TRUST THEM.

Oh God!!we're being working with main law pc and we have paid them $3380, they called me once a week to let me know how everything was going and a couple weeks ago I received a call from them telling me that my mortgage refinance was aproved , but today I got a lette from the bank saying that the attorney office had said they are not longer representing us and that they will return the mortgage to the original status, I'm very nervous right know cuze main law pc won't answer or return my calls.

I was also scammed by this firm.....they are extremely unethical.....I asked them to help me refi my loan....they said they would. Yet they took my case as a modification and did not tell me. As a firm that specializes in modifications, they should have seen from my economic status and work history that we did not qualify for a modification....after I complained they went dark on me......This firm is a rip off...do not use them

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