FTC-PR-240109-1 (Jan. 9, 2024) FTC Sends More Than $1.2 Million in Refunds to Consumers Harmed by Deceptive Mortgage Loan Modification Scam The Federal Trade Commission is sending more than $1.2 million in refunds to consumers who lost money to Consumer Defense, a deceptive mortgage modification scheme. The FTC is sending payments to 6,261 consumers, […]
Category: Mortgage Loan Modification Scam
A Mortgage Loan Modification Scam typically involves fraudulent companies or individuals who promise distressed homeowners assistance in modifying their mortgage terms to avoid foreclosure. These scammers often charge hefty upfront fees for services they claim will help reduce monthly payments or achieve loan forgiveness. They may impersonate legitimate lenders or government programs, creating a false sense of security, and often instruct homeowners to stop making mortgage payments, leading to increased financial hardship and potential foreclosure. Ultimately, victims may end up worse off, having lost money without receiving any real help.