CONSUMER ALERT!
California Department of Real Estate issues a fraud warning for Home Owners in Financial Distress!
FINALLY, the California Department of Real Estate has issued a fraud warning to financially distressed California home owners, warning about loan modification scams rampant in the market place today. Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, just since last October the DRE has filed more than 200 Desist and Refrain Orders!
Obviously, the hucksters and con artists have found easy pickings with their loan modification scams. Unfortunately, not enough of these people will end up in jail.
A list of the companies that the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp . If you have been considering using a loan modification company, or are presently involved with one, check the list to ensure that they are not included.
The DRE does mention that “not all firms who collect advance fees for loan modification services do so illegally.” However, if you are considering employing the services of a company that does charge fees up front they warrant very close scrutiny. Real Estate brokers participating in this practice must have their advance fee agreement reviewed by the DRE legal staff prior to its use. Those not licensed by the DRE do not have to submit to this scrutiny.
The California Association of Realtors reports that there is a new loan modification scam by hucksters using legislative bill number 3648 to make them look like a government entity, complete with a seal closely resembling a government seal. They are not affiliated with the government.
A copy of the complete DRE consumer alert is available on request. Simply e-mail your request to Mike@SellYourVilla.com or call 916 337-0658.
