Thaindian News

LOS ANGELES, CALIFORNIA (BNO NEWS) – Californians should avoid forensic loan audits, which are the industry’s latest “phony foreclosure-relief service,” prosecutors warned on Monday.

The scheme cheats homeowners to pay up-front fees for a forensic review of their lender’s practices, but are provided no actual foreclosure relief. Homeowners are encouraged to pay for an audit of their mortgage loan file to determine their lender’s compliance with state and federal mortgage-lending laws. This audit is a misleading claim offered to homeowners as an instrument they can use to gain ground and speed up the loan-modification procedure.

Nonetheless, evidence or statistical data will not help homeowners obtain loan modifications or provide any other foreclosure relief, even if they were performed by licensed auditors.

It is illegal for loan-modification consultants and businesses to charge up-front fees for their services. Additionally, individuals and businesses offering mortgage-foreclosure consulting, loan-modification and foreclosure-assistance services must register with Brown’s office and post a $100,000 bond.

Court orders have been sought by Brown in order to shut down more than 30 fraudulent foreclosure-relief companies.

Homeowners should be careful never to pay up-front fees, as it is illegal to collect money before services are performed, never ignore letters from your lender or loan servicer, never transfer title or sell your house to a “foreclosure rescuer,” never pay your mortgage payments to anyone other than your direct lender or loan servicer, and never sign any documents without reading them completely and carefully beforehand.

Non-profit housing counselors certified by the U.S. Department of Housing and Urban Development provide free help to homeowners and can be found in your area by calling 1-800-569-4287.

If you are a homeowner who has been scammed, you can contact Brown’s office at 1-800-952-5225 or file a complaint online at: www.ag.ca.gov/consumers/general.php.