The Federal Trade Commission (FTC) has sued a number of defendants including Preferred Law PLLC, Consumer Defense LLC, American Home Loan Counselors and others with deceiving homeowners behind in their mortgages by falsely promising to prevent foreclosures and modify their mortgages to make them more affordable. According to the FTC, these defendants routinely charged their victims $3,900 in illegal advance fees and promised that they could get the interest rates on their victims’ mortgages cut in half. Federal law makes it illegal for companies to collect advance fees until a homeowner has actually received and accepted an offer of relief from his or her mortgage lender The FTC lawsuit also alleges that the defendants were affiliated with the federal Making Home Affordable loan modification program.
A telltale sign of a mortgage relief scams is the demand for an upfront fee before services are rendered.  Mortgage scammers also often tell you to stop paying your mortgage and not to communicate with your lender.  This is bad advice when you have a problem with your  mortgage.  Failing to make payments can make it worse and not communicating with your lender if you are having a problem paying your mortgage will only make the problem worse.  Finally, don’t trust any company that guarantees that they can get you a mortgage payment reduction and never transfer title to your home to anyone saying they are trying to help you.  That is another sure sign of a scam.
If you do find yourself having difficulty making your mortgage payment, either speak with your lender directly to see if you can get a modification or call a legitimate credit counselor through the Homeownership Preservation Foundation which is a non-profit company that provides free help to modify your mortgage and avoid foreclosure.  You can reach them at 1-888-995-HOPE. You can also get additional information and help if you are behind in your mortgage by going to
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