One in every 240 California housing units was in foreclosure in April 2011, according to Realty Trac, that places California foreclosures about 2.5 times higher than the national average. Those statistic alone make the state a ripe market for loan modification scammers, who prey on desperate homeowners in search of a solution to keep their homes.
In an effort to put an end to the state’s growing loan modification fraud network, the Lawyers’ Committee recently filed a complaint against Nathanson Law Center and other alleged loan mod scammers. The suit claims that the defendants lured desperate homeowners into paying up-front fees to secure them loan mods, and then did little or no work to follow up on their promised services. While homeowners were offered 100% guarantees that their funds would be returned if a loan mod couldn’t be attained, the defendants later refused to return the fees. As a result, many of the defendants’ alleged victims lost thousands of dollars-or worse, their homes. Vulnerable homeowners come in contact with someone posing as an expert and offering to help them negotiate better mortgage terms. Little do they know, it’s a scam. This lawsuit will not only help victims recover their losses, but also will service as a deterrent against future scams.