Home Loan Modification Scam Warning
Our neighbors filed suit agianst this type of activity, but do not think that we are immune to it.
TALLAHASSEE, Fla. â€“ April 12, 2011 â€“ Florida Attorney General Pam Bondi filed a complaint yesterday against a home loan modification company for allegedly requiring consumers to pay an upfront fee for services.
According to an investigation by the Attorney Generalâ€™s Office, U.S. Mitigators, LLC, allegedly required consumers to pay an upfront fee of $2,100 before it would render services. Many consumers reported paying the $2,100 fee and an additional $399 application fee for services they never received. The Attorney Generalâ€™s complaint against the company seeks more than $48,000 in restitution for consumers.
â€œCharging upfront fees for loan modification services is illegal,â€ says Bondi. â€œIf consumers have been asked to pay upfront fees for these types of services, I encourage them to file a complaint with my office.â€
Under Florida law, loan modification companies may not solicit, charge, receive or attempt to collect or secure payment, directly or indirectly, for foreclosure-related services before completing or performing all services contained in the agreement.