Attorney General investigating fraud in foreclosure “rescue” operation
Recently we have seen more articles of local and state goverments going after people who are operating loan modification scams. This article comes by way of a tampa newspaper, from what we have seen, Florida is being hit harder then california by these loan modification scam artists. This is very suprising since the problem was created by Orange County california based companies.
It is one of more than 50 such investigations now underway in Florida, which ranks second nationally in foreclosures.
“The time is ripe for disreputable companies and individuals to capitalize on consumers’ financial concerns,” said Attorney General Bill McCollum, “and foreclosure rescue fraud is one of the worst manifestations of the current economic situation.”
As the St. Petersburg Times reported last fall, Rechnitz, 62, told homeowners that investors would buy their houses, make the payments and stop the foreclosure proceedings. The sellers could then rent back their homes with an option to repurchase them in two years.
Everybody seems to agree, either go with a not-for-profit that is govermement sponsored, or do the loan modification yourself.
