Homeowners Lose Thousands in Loan Modification Scam

Emotional homeowners explained how they lost thousands of dollars after they paid money for a loan modification they never received.

They are stories of homes lost in foreclosure or nearing it.

The Federal Trade Commission said it’s a scam that spans across the country.

Jonathan Cohen, an attorney at the Federal Trade Commission offers these tips to help homeowners protect themselves from becoming a victim of fraud:

  • Never send a payment to any address other than the one on your mortgage statement.
  • It’s very unlikely homeowners who need loan modifications will be contacted by a third party in the mail or over the phone
  • The best help is free. If anyone asks for money for help getting a loan modification, it’s an enormous red flag.
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