Mortgage Loan Modification Scheme Gets Busted

4 men plead guilty to conspiracy to defrauding approximately 4,000 underwater homeowners. 

According to court documents, the men opened up loan modification business in 2008. They used high-pressure sales tactics and outright lies to induce customers to purchase $1,995 to $4,495 loan modification services. They used false claims that they had a team of attorneys who pre-screened clients and had a 98% success rate in obtaining loan modifications.

The loan modification business pretended that they had a special relationship with a particular client’s bank, or that the company had helped thousands of happy homeowners with loan modifications. The telemarketers even persuaded homeowners to pay the company’s fees instead of using their limited funds to stay current on their mortgage payments.

Through the use of false representations and promises,  the fraudulent loan modification business obtained more than $11 million in client payments between 2008 and 2010 from more than 4,000 homeowners across the country.

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Here is an ad from the fraudulent loan modification business:

It is our mission and highest priority to provide Americans in every city with an ethical, affordable, and effective program in obtaining multiple solutions to financial freedom. Our vision is to create the largest and most reputable law firm in the country by providing education, customized client resolutions, and 100% customer service/satisfaction. It is evident, through the financial crisis that is taking place in all aspects of lending, that consumers need a personal advocate to help intervene. 1st American Law Center and Gary Bobel are committed to protecting all Americans from predatory lending and financial distress. It is our confident belief that success ultimately depends on establishing a customer service and relationship oriented environment, that instills the integrity in each team member in the crusade of “Protecting The American Dream.”

Please be aware of loan modification schemes.  

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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

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