Loan modification scams and U.S. Foreclosure Relief

November 17, 2009
>> Bankruptcy, Creditors, Debt, Foreclosure, Loan modification, Mortgage, Scams

There’s a great recent post by Professor Katie Porter on the CreditSlips.org blog about loan modification scams.

If you’ve read other posts on NYBankruptcyNet on the topic of loan modifications, hopefully you’re familiar with the basic gist: namely that any non-lawyer loan modification service (and unfortunately, some lawyer loan modification services) are almost always scams. The same lowlifes who scammed people with loan originations are have shifted shapes to become the scammers in the loan modification business.

What’s striking about the post, though, is some of the information revealed:

There’s really no lawful way to run a loan modification business that makes a sufficient profit. The business model for loan modification services relies on high pressure, cash-up-front sales pitches. And misleading statements that they help 90% of their customers obtain loan modifications.

Sales agents for the U.S. Foreclosure Relief (a loan modification agency recently shut down by the Missouri State Attorney General’s Office) offered Rolexes to the top salespeople and used other high-pressure, low ethics sales incentives usually associated with vacuum cleaner salesmen.

It’s also worth reading some of the back and forth in the comments section following the post as CreditSlips.org tends to attract a very experienced and educated readership.

In the meanwhile, if you’re facing foreclosure in New York, considering filing bankruptcy in New York or need other questions answered to help you save your home and stay afloat, please contact me for a free initial consultation.

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Bankruptcy, Brooklyn Bankruptcy, Foreclosure, Loan modification, Mortgage, New York Bankruptcy, New York Bankruptcy Lawyer, Non-bankruptcy options, Scams

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