It sure seems like Orange County in California is a hub in loan modification scams.
Here are some excerpt from a story “Home loan modifiers scam families out of $3,000 each” that is worth reading.
When the economy and real estate market went south, many families went to home loan modification companies to save their homes. But, more than a dozen Kern County families contacted Eyewitness News after one modification company took their money and didn’t do anything it promised.
Each family paid Los Angeles-based Loan Modification Group $3,000 to get a home loan modification, and each family had their own reason for wanting a modification.
Eyewitness News went to Kern County Deputy District Attorney Gordon Isen, who specializes in real estate fraud, to ask about home loan modification scams.
Isen said, “When there’s a downturn in the real estate market this type of crime has arisen in the past, but it’s now reached proportions I’ve never seen before and I don’t think anyone’s seen before.”
He added that not only is it a serious crime, but an intentional one. “It’s not a crime of passion, it’s not a crime of the moment. People doing this type of criminal conduct think about their crimes, they prepare for their crimes, they consult with others and conspire. I think they are people very worthy of criminal prosecution.”
Turns out, Loan Modification Group is also known as MBM and Balboa Law Group. The employee told Eyewitness News they did debt settlement. When we asked the employees what happened to the money and what they had to say about the families who were hurting, they had no comment.
Since the encounter, Eyewitness News learned that the company is no longer offering home loan modifications. But that’s little comfort to the homeowners who are out $3,000 and in danger of losing their homes.