By:  LINDSEY O’NEILL, ESQ.

By now, we’ve all become familiar with loan modification scams, deceptive mortgage rescue ads, and other foreclosure scams.  State Attorney General offices have received numerous complaints from unwary consumers who have fallen victim to some of these companies after having forked out substantial money to them, with little or no resolution to their mortgage problems.  Well, the FTC has rallied to help.  (It is its job, anyway, to protect consumers in such a way.)  Cleverly called “Operation Loan Lies,” the FTC is coordinating its efforts with other law enforcement agencies to help protect families and individuals from falling prey to the unscrupulous scammers.  The FTC is also bringing lawsuits against many of these companies for their illegal activity – including charges of deceptive advertising, false claims, misrepresentation, and failing to provide promised services. 

You know the ones I’m referring to – those companies that promise to stop foreclosure, rescue homeowners from high mortgage payments…. all for just a “small” upfront fee.  The truth is – nobody can promise to stop foreclosure and nobody can promise to get you a loan modification. 
However, there are professionals out there, including attorneys, who CAN advise you of what options are available for your particular situation.  Seriously, understanding the landscape is half the battle.  Also, attorneys CAN help you navigate the process with your lender. 

Read the FTC news release about Operation Loan Lies by clicking here. 

To learn more about how the financial crisis affects you, including information about foreclosure, loan modification, and debt relief, visit LawInfo’s Free Legal Resource Center.  For more information, consult an attorney in your area about your financial concerns.  Visit LawInfo’s Attorney Directory to locate an attorney.