Consumers Need To Be Very Careful When Considering Working With Companies Offering Loan Modifications
Posted on Oct 10, 2012 12:55pm PDT by Brandon Grim, Esquire
There may be many reasons why someone may be seeking a loan modification.
Restructuring their mortgage payment can be a great tool to save their
home from foreclosure or to lower their payment to a manageable sum. However,
they must be aware of certain companies who offer to make this process
easier—sometimes the cost may be prohibitive and the result may
leave them worse off than where they began.
By using their naiveté against them, these predatory companies bait
"at-risk" homeowners with promises of loan modifications, only
to leave them with default judgments or lawsuits against them, as well
as a hole in their pocket. Many of these predatory loan modification companies
deceptively claim that they are an affiliate of the United States Government,
then take thousands of dollars in up-front fees before turning their backs on them.
To make matters worse, the money they pay may at times be used to line
the pockets of the principals at these predatory loan modification companies
and support their profligate lifestyle.
In an attempt at combating malicious loan modification companies, the United
States government, by and through the 2010 Dodd-Frank Act, established
the Consumer Financial Protection Bureau ("CFPB"). In short,
the CFPB's mission is "to make markets for consumer financial
products and services work for Americans."
On July 23, the CFPB filed its inaugural civil suit in federal court against
a Los Angeles law firm and auxiliary businesses with which it was associated.
California may be the first state in which suit was filed, but complaints
have been filed in other states across the country.
Attorney Michael Forbes commented that "there may be some good loan
modification companies out there, but that he has yet to find one. Attorney
Forbes believes that the CFPB needs more suits filed because people are
getting default judgments against them or sued and they don't know
what to do because they were promised security and legal counsel/help,
but end up being left out to dry."
If you are facing loan modification or any other debt related case, consider
seeking the council of an attorney from The Law Office of Michael P. Forbes,
PC to guide you through the process.
Contact the firm today.
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