Homeowners Current On Their Mortgage Payments Now The Target Of Some Loan Modification Peddlers

The competition among the peddlers of loan modification services has apparently become so fierce that some outfits aren't even waiting for the legal notices indicating mortgage loan default to be filed in the public records to identify and contact potential targets - they are simply contacting anybody with a mortgage, as reflected in this Florida story in TC Palm:

• [S]eacoast National Bank executives became concerned when some of their mortgage customers received a letter from an Ohio attorney a few weeks ago claiming they were more than 90 days behind in their payments. The letter went on to say, “If you do not act immediately Seacoast National Bank may file a lawsuit to take your home.” The borrowers who contacted Seacoast after receiving the letter knew they were not delinquent in their payments.(1)

• A Seacoast spokeswoman said the attorney and the company that sent the letter offering to help those who got it probably obtained a list of the bank’s borrowers from public records and sent out a mass mailing. They were hoping to ensnare some of the bank’s delinquent borrowers before other competitors, who normally wait for foreclosures to be publicly filed, could reach them.

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• W.D. “Chic” Acosta, executive vice president of Seacoast’s Mortgage Lending Division, said he was concerned by the use of scare tactics to make borrowers believe they may be in jeopardy of losing their home.

The story also reports that one homeowner current on her house payments actually received a phone call with a recorded message from someone saying they had been informed she was more than 90 days behind in her mortgage payments.

For more, see Treasure Coast homeowners warned against home rescue fraud.

(1) Reportedly, the letter goes on to exclaim in bold letters: “Beware of mortgage rescue scams! Only licensed attorneys can represent you!” The Ohio attorney is not licensed to practice in Florida, according to the story, and a Florida Bar spokeswoman reportedly confirmed an investigation of the attorney is ongoing. The Seacoast spokeswoman said the attorney and the company were reported to local, state and federal law enforcement authorities.