Academy Home Services and Home Matters USA were recently shut down by state and federal authorities for a loan modification scheme that defrauded thousands of California homeowners. The company allegedly defrauded homeowners by promising to reduce their mortgage payments and simply pocketing the money for themselves.
The lawsuit filed against Academy Home Services alleges that the company violated several laws and regulations, including the Mortgage Assistance Relief Services Rule, the California Consumer Financial Protection Law, FTC ACT, and the Covid-19 Consumer Protection Act. According to the authorities, the company's sales representatives targeted California homeowners facing foreclosure through telemarketing calls, text messages, and online ads. They would charge the homeowners an upfront fee and promise to negotiate with the lenders to lower their monthly payments. However, investigations by the Federal Trade Commission and the California Department of Financial Protection and Innovation found that instead of working with the lenders, the company would simply pocket the money and leave the homeowners worse off than before. The company also claimed to be affiliated with government agencies or that its services were part of government Covid assistance programs, which was not true. The company had also falsified documents to make it appear as if they had successfully negotiated lower mortgage payments for their clients. Many homeowners who fell victim to this scheme ended up losing their homes to foreclosure due to the delay and the fraud.
The case of Academy Home Services is just one of many instances of mortgage modification fraud that have plagued the real estate industry in recent years, especially in California. Illegal mortgage relief assistance schemes are a significant threat to homeowners, particularly homeowners who are in financial distress. The Federal Trade Commission and the California Department of Financial Protection and Innovation are urging homeowners to be extremely cautious when seeking mortgage relief assistance, particularly through telemarketing calls, text messages, and online ads. Consumers should always verify the legitimacy of a company before providing personal or financial information or paying any fees.
Here are some resources that homeowners can use to avoid loan modification scams:
- The Federal Trade Commission (FTC) provides tips on how to spot a mortgage relief scam and how to avoid becoming a victim. You can visit their website at www.ftc.gov.
- The Consumer Financial Protection Bureau (CFPB) also provides resources for homeowners who are struggling to pay their mortgages. They have information on loan modifications and other ways to avoid foreclosure. You can visit their website at www.consumerfinance.gov.
- Lawyers Realty Group is a law firm that specializes in securing loan modifications and providing real estate legal services. LRG is based in California and has helped thousands of homeowners avoid foreclosure. Visit www.lawyersrealtygroup.com for free resources and to arrange for a free legal analysis of your situation.
It is worth repeating how important it is for homeowners to be cautious when seeking mortgage relief services. Scammers are making millions of dollars by promising to modify loans and charging up-front fees to trusting homeowners, leaving them in a much worse financial situation and putting their homes in jeopardy. By working with established and reputable companies like Lawyers Realty Group, homeowners can protect themselves from fraud and find the mortgage relief they need.
Contact Lawyers Realty Group Today at (949) 264-0966
Never let anyone pressure you into a loan modification scam without speaking to an attorney first. Reach out to our expert Attorney/Realtor today at (949) 264-0966 for a free legal analysis of all of your options. We will outline the best course of action for you without any cost or obligation.
Lawyers Realty Group was established over 20 years ago to provide a higher level of professional representation for homeowners in difficult situations. By combining expert legal representation with comprehensive real estate transactional services, homeowners receive unparalleled service and protection.