California Attorney General Jerry Brown announced a sweeping crackdown on loan modification consultants who perpetrate foreclosure scams against homeowners who are behind on their mortgage payments.
Starting July 1, 2009, any foreclosure consultants operating in California must register with the state and post a $100,000 bond. The new regulations are designed to stop scams that have cost homeowners millions of dollars. Typically, the scam artists promise to stop foreclosure, charge significant upfront fees and then provide little, if any, service. Not only do homeowners lose their money, they end up losing their homes as well.
How This Affects You
Foreclosure scams are pervasive, and con artists have unfortunately been running ahead of the regulators. Currently, California and Illinois seem to be the two states that are most aggressively pursuing foreclosure scams. Hopefully, other states will take similar actions to protect homeowners who are behind on their home loans.
MoneyHugger gives kudos to Jerry Brown and the rest of the California Attorney General’s office.
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