Mortgage Mod Scams Using Paperthin Lawyers As Legit Front

“Let me put it this way. It’s like food stamps,” said the mortgage modification telemarketer trying to talk consumer advocate and Red Tape Chronicles blogger Bob Sullivan into a new loan. Following the trail of who this guy works for lead Sullivan to discover a new kind of mortgage modification scammer.

Many states have outlawed collecting upfront fees for loan modifications – talking people into forking these over are the heart of the scam – but there is an exception for attorneys. So what these places are doing is hire a few lawyers who just provide a storefront face while the loan mod ripoff continues in the boiler room.

Beware of any service that asks for a hefty upfront fee, it’s often the sign of a con. And if your mortgage is in trouble, don’t listen to some guy who cold calls you on your cellphone. Instead, phone a HUD-approved nonprof no-fee housing counselor.

Would you buy a mortgage from a car salesman? [Red Tape Chronicles] (Photo: travelator)

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