WASHINGTON -- The Federal Trade Commission is focusing on the up-front fees charged to consumers in need of help modifying their mortgage. During our SAVE YOUR HOME coverage, we alerted you to these fees. In Missouri, it's illegal to collect up-front.
Housing advocates have found the fees paid rarely pay off for consumers. The fees sometimes cost more than a thousand dollars.
The FTC says its filed 22 cases against companies for foreclosure rescue and loan modification scams since the housing crisis began.
"Today’s challenging economy presents an opportunity for con artists who prey upon financially distressed consumers. The Federal Trade Commission and our state and federal partners will continue to bring law enforcement actions to stop this insidious fraud,” FTC Chairman Jon Leibowitz said. “If you’re worried about keeping your home, avoid any company that asks for a large fee in advance, guarantees that they’ll stop a foreclosure or modify a loan, or tells you to stop paying your mortgage company and to pay them instead.”
If you know of a foreclosure rescue and mortgage modification scam, call the FTC at 1-877-FTC-HELP.
The FTC also released an educational video to help consumers spot these scams. To find more links for protecting your money and home, click here www.ftc.gov/moneymatters.
There are local resources to help you save your home. Call 211 or click here for the local list.
