Warning Signs of South Florida Foreclosure Scams
With the number of South Florida foreclosures rising, scam programs are multiplying. Many fraudulent organizations have been preying on the emotional distress many homeowners feel when facing foreclosure.
Keep your eyes open for the following warning signs when considering a mortgage loan modification or foreclosure assistance:
- High up-front fees – although many legitimate foreclosure assistance companies do charge fees, they are small and not required until after they start your case. Be especially wary of companies that require high up-front fees and claim to be government-sponsored. Government programs are free.
No bankruptcy help for homeowners
No bankruptcy help for homeowners
Measure to modify delinquent loans in bankruptcy court fails in Senate. Obama administration loses big stick to prod loan servicers to aid troubled borrowers.
NEW YORK (CNNMoney.com) — The Obama administration lost a bid to add a powerful weapon in its fight against foreclosure Thursday, after the Senate voted down a proposal to allow bankruptcy judges to modify mortgages.
The defeat left many housing advocates questioning the effectiveness of the president’s loan modification plan. The so-called cramdown provision, which would have allowed judges to reduce mortgage principal, would have put pressure on servicers to modify loans before borrowers file for bankruptcy.