Foreclosure Scams

Occasionally, a lawyer will come across a homeowner who has been the victim of a foreclosure scam. The latest, forensic mortgage loan audits, are peddled by companies claiming to review mortgage loan documents in order to find violations of state and federal mortgage lending laws. Their reports, they claim, can be used to avoid foreclosure, accelerate the loan modification process, reduce loan principal or even cancel the loan. But according to the Federal Trade Commission and its law enforcement partners, there is no evidence that forensic loan audits will help a debtor get a loan modification or any other foreclosure relief, even if they're conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer.

If you think your client has been the victim of foreclosure fraud, the FTC urges you to contact them at www.ftc.gov, as well as contact your state's attorney general at www.naag.org.