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Man behind fraudulent mortgage debt relief scam shut down

When the housing market collapsed approximately six years ago, many homeowners found themselves in over their heads as they tried to make mortgage payments they could not afford toward a balance that exceeded the current value of their homes. As a result, some Washington families may have wound up losing their homes to foreclosures. To make matters worse, there were several unscrupulous individuals who set up fraudulent businesses in an attempt to take advantage of those who were struggling to keep up with their mortgage debt.

Even though the housing market is recovering from the severe downturn, the Federal Trade Commission (FTC) is still attempting to process all of the claims related to fraudulent relief agencies that scammed homeowners during the crisis. One man and his companies have been shut down after purportedly collecting hundreds of thousands of dollars under false pretenses. He was reportedly operating several companies named in a way to convince victims that his offers were approved by the government.

The man purportedly contacted troubled homeowners and offered to complete loan modifications for them without charge. Once his offer was accepted, the victims were instructed to cease communication with their lenders and to forward the supposedly re-negotiated payments to a variety of Washington, D.C., addresses. The funds were then transferred to his company in Florida. No monies were directed toward any actual mortgage payments.

The FTC ordered the man to cease involvement with any purported relief agencies going forward. The agency also entered a judgment against him in excess of $812,000. The damage that this and similar scams caused their victims is incalculable. Many who were already struggling to keep up with their mortgage debt not only lost their homes but also possibly thousands of dollars as well. Washington families who feel as if they are in over their heads financially and do not know where to turn may wish to research the benefits that a bankruptcy filing may provide.

Source: yumanewsnow.com, "FTC Settlement Bans Scammer from Mortgage Modification and Loan Business", Dec. 15, 2014

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