This week the Federal Trade Commission obtained an order in Federal Court closing Consumer Advocates Group Experts, LLC and others from scamming homeowners having difficulties with their mortgage. Companies like this guarantee that they can get mortgage modifications with reduced interest rates and lower monthly mortgage payments. These companies charge up to $2,500 for “forensic audits” by which they would determine if the lenders complied with all state and federal and state laws and use this information to avoid foreclosure and renegotiate the terms of the mortgage to more favorable terms. Unfortunately, the company did not do as it claimed and often never even contacted the lenders or failed to follow up with the lenders.
Generally companies offering “forensic audits” are scams. Even if errors are found in the lender’s actions, that does not mean that the lender must renegotiate the loan. Red flags of mortgage rescue scams include guaranteed results (no one can do that), collecting a fee before providing any services or wanting their fee wired to them. If you are in need of help with mortgage difficulties, contact 888-995-HOPE for free advice from housing agencies certified by the Department of Housing and Urban Development (HUD).