The Real Estate Wonk: Careful whom you call for mortgage help
If someone offers to help modify your mortgage for the low-low upfront fee of $3,500, run for the hills. That was the state of Maryland’s advice Tuesday as it issued cease-and-desist orders to five loan-modification companies, firms it alleges took that sort of money from hundreds of cash-strapped homeowners and then did absolutely nothing.
The orders were part of a continuing nationwide effort to crack down on loan-mod scams, which have flourished like mold in a damp basement as the housing-market crash worsened in the last two years.
Cease-and-desist orders went to Equity Recovery Services LLC, U.S. Equity Solutions LLC, Save My Home USA Co. Inc., GIAN Inc. and Help Modify Now Inc., along with affiliates and arms operating under other names. The orders were among 118 legal actions across the nation, the Federal Trade Commission said. (Here’s a post about a previous wave of legal actions in July.)
Among the online complaints from consumers is this one: “Save My Home USA LOST my home!”