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Company took advantage of those seeking loan modification

Many Florida residents and others around the nation were looking for financial relief during the most recent mortgage crisis. Many homeowners hoped to execute a loan modification to ease their financial stress while remaining in their homes. However, a company based in another state took advantage of homeowners in need during this time. The owners of the company were recently indicted for fraudulent mortgage activities.

The three men actually named their company HAMP Services, seemingly tying it to the nation's Home Affordable Modification Program. The company claimed it could help homeowners get a loan modification for their mortgages with low interest rates. Apparently, homeowners were required to submit three trial payments before the modification would take place.

After the trial payments were made, the loan request was transferred to another company, where it was communicated that work was continuing on the cases. However, none of the payments made by customers of the company were ever applied to a loan. It was reported that roughly 500 people were defrauded by the company for at least $2.5 million.

All three men face charges of conspiracy to commit mail fraud. Each has been charged with three to six mail fraud counts. If convicted, each count has a statutory maximum sentence of 30 years in federal prison.

Predators often establish fraudulent businesses to take advantage of people in financial distress. However, there are legitimate professionals to help homeowners who want to secure a loan modification for their mortgage. A Florida bankruptcy lawyer can help clients fully understand their options and develop a plan that can make positive changes in their financial situation.

Source: housingwire.com, "Three California men accused of preying on borrowers in loan modification scheme", Ben Lane, Jan. 15, 2018

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