Loan Modification Scam Companies Stronger Then Ever
We have been saying this for quite some time now, almost a year. But its still good when we read articles that agree with us =). The Seattle times by way of the New York Times has an article called “Swindlers swarm to foreclosures” which talks about Loan Modification scams.
Borrowers seeking loan modification are often frustrated that they cannot reach the right people at their lender or that the lender insists on a repayment plan they cannot keep, said Ira Rheingold, executive director of the National Association of Consumer Advocates.
“When you’re desperate, that’s when the crooks come out,” Rheingold said.
“You’ve tried everything, and a guy calls you up on the phone or there’s an ad on TV, and you have no other options, what do you do? You go to those guys,” he said, adding:
“People probably know in their heart of hearts that they may be getting ripped off, just like most people understood on their mortgages that they were getting in too deep, but bankers said yes, so it must be OK. It’s the same thing. The real problem is that we continue to fail to have systems in place that help people,” Rheingold said.
Rosenau, the California prosecutor, said that even when she told people that they had been swindled, “they don’t believe it, because they want it not to be true.
