FTC SENDS REFUNDS CHECKS TO CONSUMERS VICTIMIZED BY ALLEGED MORTGAGE RELIEF SCAMS

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Mails Refund Checks Totaling Approximately $800,000 to Consumers Victimized by Alleged Mortgage Relief Scams

The Federal Trade Commission, through an administrator, is mailing checks totaling approximately $800,000 to 1,305 consumers who fell prey to two related mortgage relief scams.

In one scheme, using the name Precision Law Center, the defendants allegedly made false promises to consumers that if they sued their lenders along with other homeowners in so-called “mass joinder” lawsuits, they could obtain favorable mortgage concessions from their lenders or stop the foreclosure process. In the other, using names such as FreeFedLoanMod.org, HouseHoldRelief.org, and MyHomeSupport.org, the defendants charged consumers for “forensic loan audits,” and allegedly misrepresented that they could use the results to force lenders to give them better mortgage terms.

 The checks must be cashed on or before October 7, 2014. The amount consumers will receive varies depending on how much they lost.  The FTC never requires consumers to pay money or provide information before redress checks can be cashed.

Consumers should carefully evaluate offers of help in lowering their mortgage payments or saving their homes from foreclosure. Consumers should also know that it is illegal for anyone to collect money up-front for loan modification or foreclosure rescue services. For more information see: Mortgage Relief Scams.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.