Massachusetts Loan Modification Firm Accused Of Scamming Homeowner Out Of $995

In Boston, Massachusetts, WCVB-TV Channel 5 reports:

• As the foreclosure crisis grows so does a cottage industry of loan modification companies that promise to work with lenders and lower monthly mortgage rates. But Team 5 Investigates found the practices of many of these companies are not only unethical, they are illegal.

• Donna Warren's back injury forced her to stop working. Before too long, she fell behind on her mortgage payments. She went online and found Oceanview Investments. "Oceanview did nothing. They took my money and did nothing," said Warren. Donna paid Oceanview $995 to work with her lender on her behalf. "They promised that I wouldn't have to deal with my mortgage company at all, and to ignore any calls I got from them," said Warren.

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• The company's Web site says they are no longer accepting clients. Florida's attorney general has launched an investigation after getting 40 complaints in less than a year. [...] Glenn Russell is a mortgage attorney who has seen loan modification companies popping up more frequently. "They promise we'll cut your mortgage in half, or we'll knock that interest rate down," said Russell. "They are targeting people that are the most vulnerable."

For more, see Mortgage Predators Take Money and Run (Many Companies Charge Up-Front Fees Illegally).

In a related story, see The Associated Press: It's boom time for foreclosure scam artists (Only in a few states are attorneys general offices willing and able to seek criminal charges and jail time against foreclosure con artists) (If link expires, try here).