Avoid mortgage mortgage relief scams

But these so-called mass connection actions advertised in programmes are fraudulent - allegedly out by company law firms, according to a consumer warning on the Federal Trade Commission website are published.

The F.T.C filed a lawsuit against an operation based in Santa Ana, California last month, claiming that it nationwide more each join as to pay $6,000 to $10,000 to 1,000 homeowners "mass connection" suit, which similarly had convinced as are class action lawsuits. House - and apartment owners with little or nothing in return landed, said the F.T.C...

"It is a new trend," Reilly said Dolan, the Agency Deputy Director of financial practice, these fraudulent operations describe changes as part of a wide range of fraud in connection with loans.

Consumers can lose valuable time, these dishonest players - not to mention money. The non-profit Lawyers Committee for civil rights under law, the seven complaints nationwide with fraudulent loans has brought changes, estimates that nationwide homeowners, the fraud in its database registered have lost over $ 60 million in the last two years alone, and $4 million of these losses were suffered by New York.

Of course, there are many credible law firms to help homeowners. But Mr Dolan pointed out that some companies could promote itself as a provider of services in the area of law, when they, just an advocate for retention say, as a way to F.T.C had rules to collect only lawyers in advance fees on mortgage help. And these companies may not meet all requirements of the rule, which also requires that the lawyer licensed his lawyer in the State of the homeowner lives.

"We get people who think that they have lawyers who have received the lawyers that they are not sufficient support, definitely," said Erica Jo Gilles, Associate Director of advocacy and public relations at the South Brooklyn legal services.

Such companies and people as lawyers are 60 per cent jump in complaints about mortgage in this year according to a report this month from home ownership Preservation Foundation, was fueling the distressed homeowner helps. The nonprofit group says that the boost with the announcement of the new Covenant falls utilities for homeowners.

How can to protect consumers from unscrupulous operations? Here are some suggestions from industry experts.

Validating credentials State bar associations have lists of approved lawyers. (And the national organization of bar counsel Web site contains links to national associations bar.) When you speak with an attorney, consumer questions on the track record of the lawyer, including the documentation of achievements through media reports or court documents granting signed borrower money or relief. The names of the lawyers that specialize in foreclosure and loan modification, local bar associations provide housing can guide of nonprofit groups in some cases.

Beware of promises "Legitimate lawyers not guarantees, such as doctors," said Colleen Hernandez, the Chief Executive of the Homeownership Preservation Foundation. In particular Mr Dolan of F.T.C. proposed, restore to avoid companies that promise to credit.

Pay in advance "When they say n-O, questions you want for any kind of money,'" said Martha Cedeno-Ross, a consultant with neighborhood of housing services in Waterbury, Connecticut provides that that there are non-profit groups many free services, certified by the Department of housing and urban development.

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