FTC Wants To Ban Mortgage Mod Services From Charging Up-Front Fees

To combat mortgage relief fraud, the FTC would like to make a new rule that would ban mortgage modification services from charging up-front fees. “Homeowners facing foreclosure or struggling to make mortgage payments shouldn’t have to contend with fraudulent ‘companies’ that don’t provide what they promise,” FTC Chairman Jon Leibowitz said in a statement. “The proposed rule would outlaw up-front fees so companies can’t take the money and run.” Indeed, there are some shady operators in this area and consumers need to beware.

Here’s a video from the FTC on avoiding foreclosure rescue scams. The big pieces of advice are to watch out for companies who 1) Make any guarantees 2) Ask for money up-front or 3) Tell you to make your mortgage payment to them.

FTC Proposes Rule That Would Bar Mortgage Relief Companies From Charging Up-Front Fees [FTC.gov]