Loan Modification Scams

Subprime mortgage lenders created an unprecedented amount of turmoil in the US housing market by selling thousands of negative-amortization loans and other risky mortgage instruments to people who did not have sufficient income to make the payments on their homes. To make things worse, more often than not, these lenders sold their loans while not making complete disclosures to the borrowers about how the loan even worked. In recent times, many of these lenders have gone bankrupt, and many borrowers have been left on the verge of foreclosure.

Re-spun Sub-prime Lenders Victimize Consumers Selling "Loan Modifications"

With fewer and fewer people in the market for borrowing money, many of the people who previously operated disreputable lenders have changed their tactics to prey upon home-owners who are unable to make their loan payments. "Loan Modification" companies have sprung up, often-times operating from the same office where a sub-prime lender once operated, offering to negotiate with the current loan owner and slash a borrower's mortgage payment by a significant portion. The loan modifiers may even represent to the troubled borrower that they are a law firm, or that attorney's will be handling their case. Victims of Loan Modification scammers, must pay several thousand dollars, up-front, for the loan modification company to "take their case." The loan modification company then, does not make any effort to negotiate on behalf of the client, and their loan goes into foreclosure. This sad state of affairs is a continuation of the unethical business practice that created the sub-prime crisis to begin with. Consumers are given misleading or outright false information while the loan modification company takes their money and moves on to find another victim.

Seeger Weiss LLP is investigating claims of defrauded home-owners for a potential class action lawsuit. If you have consulted with a "loan modification" company and they have done nothing to negotiate your home loan, and you would like to speak with an attorney regarding your potential rights please fill out the free case evaluation form, or call us toll-free at (888) 584-0411. Attorney consultations incur no obligation on your part. All initial consultations are free of charge and do not create an attorney-client relationship.