WASHINGTON (8/11/14)--More than 1,300 customers who fell prey to mortgage relief scams will be receiving checks totaling approximately $800,000. The Federal Trade Commission (FTC) announced that refund checks will be sent, though an administrator, to 1,305 consumers affected by two related scams.
In one scheme, a company using the name Precision Law Center alledgedly made false promises to consumers that if they sued their lenders along with other homeowners in so-called "mass joinder" lawsuits, they could obtain favorable mortgage concessions or stop the foreclosure process.
In the other, using names such as FreeFedLoanMod.org, HouseHoldRelief.org and MyHomeSupport.org, defendants charged consumers for "forensic loan audits," and allegedly misrepresented that they could use the results to force lenders to give them better mortgage terms.
According to the FTC, consumers should carefully evaluate offers of help in lowering their mortgage payments or saving their homes from foreclosure. It is illegal for anyone to collect money upfront for loan modification or foreclosure relief services.
Use the resource link for more information on mortgage relief scams.