Alabama Issues Warning On Dealing With Loan Modification Firms / Foreclosure Rescue Operators; Charging Upfront Fees In State Prohibited

In Birmingham, Alabama, the Birmingham Business Journal contained this warning in an excerpt on a story on loan modification firms targeting Alabama homeowners:

• The [State of Alabama Banking Department's] Bureau of Loans Supervisor Scott Corscadden said consumers must [...] watch out for predatory behavior [from individuals or companies offering mortgage loan modification assistance]. “Unfortunately, nationwide there is an increase in cases where individuals or companies are promising to assist consumers in obtaining a mortgage loan modification and charging up front fees and performing little or no services for those fees,” he said.

• Alabama does not allow companies to charge any upfront or advance fee.

Source: State warns of new mortgage schemes.