Saturday, December 3, 2011

Three Alleged Mortgage Scammers Arrested In California

Three Alleged Mortgage Scammers Arrested In California

Unsavory mortgage practices have become widespread since the onset of the housing crash, which has left countless homeowners trying to stay one step ahead of foreclosure -- presenting a prime opportunity for scammers who claim they can lower homeowners' payments.

And such practices are exactly what a new government task force, announced earlier this week, is aiming to stamp out.

The task force, a collaboration between SIGTARP, the Consumer Financial Protection Bureau and the Treasury Department, will investigate people and companies suspected of trying to take advantage of homeowners seeking mortgage modifications.

A consumer fraud alert issued by SIGTARP this week notes that such guarantees are almost always a red flag for a scam, since third-party companies can't actually promise that a loan will be modified. Those decisions are only made by mortgage servicers.

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