FraudJournal Blog

May 10, 2012

A New Twist to Foreclosure Rescue Fraud

Dear Fellow Fraud Fighters;

The FBI and FTC need our help. Please take some time to become educated about this new scam and get the word out to your colleagues and community to stop this new twist on “foreclosure rescue fraud” because it is a serious threat to distressed homeowners and it is called Forensic Mortgage Loan Audits. Many of you may have heard of this or even come across this, but it has started to increase at an alarming rate.

This fraud is about selling “hope” and they are relying on the buzz word “forensic” to sound credible, necessary and effective and legal. They call themselves:

  • Forensic loan auditors
  • Mortgage loan auditors
  • Foreclosure prevention auditors
  • Forensic attorneys

Yes, forensic attorneys. By using public information, these so-called “rescue” professionals send out mailings to exploit distressed homeowners by lulling them into the false sense that a forensic audit will indicate if their loan was not in compliance, and by not meeting the state and federal mortgage lending laws they can help the homeowner:

  • Avoid foreclosure
  • Expedite the loan modification process
  • Reduce the loan principal
  • Cancel the loan
  • Lease the home to be able to buy it back over time
  • Make mortgage payments to them and they will work with the lender
  • Transfer the property, deed or title to them
  • Offer to purchase home at a price inappropriate for housing market
  • Pressure to sign documents without proper time to review or read thoroughly

Although this scam is preying on the financially strapped homeowner, the elderly and military veterans and their families are being targeted also. As you all know, a mortgage cannot be eliminated by a report, lenders are not required to modify a loan because of this report, the lender is not required to modify a loan and a report will not force a lender to negotiate the terms of a loan. There is no report that is guaranteed way to stop a foreclosure.

Please contact the FTC or FBI with any concerns or questions.


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