FTC Fines Mortgage Fraud Companies $9 Million

Victims of mortgage fraud scams can rest easy tonight after the finalization of months of litigation. Six companies were convicted of performing fraudulent mortgage modification and foreclosure services for homeowners.

Caught Red Handed

After taking millions from unsuspecting homeowners, these companies came up on the radar of the  Federal Trade Commission within months. Accused of accepting advance fees from victims whose mortgage relief services were never performed, many of these companies were able to get away with big money. The FTC also found that these companies were promising to represent homeowners in modification negotiations, pay mortgage payment on their behalf and claimed they could guarantee their pre-approval for a  loan modification.

After more victims began to surface the FTC took notice and began investigating the fraudulent companies. Claiming to operate under falsified information and fake government programs, the FTC shut down several companies around the county. After months in court, the six companies are required to pay over $9 million in restitution to victims and are permanently banned from providing further debt relief services.