Home loan modification scam warning

TALLAHASSEE, Fla. – April 12, 2011 – 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 General’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 General’s complaint against the company seeks more than $48,000 in restitution for consumers.

“Charging upfront fees for loan modification services is illegal,” says Bondi. “If consumers have been asked to pay upfront fees for these types of services, I encourage them to file a complaint with my office.”

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.

To file a complaint, consumers can call the Attorney General’s fraud hotline at 1-866-966-7226 or file online at http://www.myfloridalegal.com.

The Federal Trade Commission (FTC) has also issued rules concerning mortgage assistance relief services (MARS). For more information, visit the Legal Center on the Florida Realtors’ website.

© 2011 Florida Realtors®

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