Feds Accuse South Florida Outfit Of Peddling Bogus Loan Modification Services
- As part of the Federal Trade Commission’s continuing crackdown on scams that target homeowners behind in their mortgage payments or facing foreclosure, the FTC has charged a national operation with marketing bogus loan modification
services.(1) The FTC seeks to stop the illegal practices and make the defendants pay refunds to consumers.
- According to the FTC’s complaint, the defendants target financially distressed consumers using direct mail, the Internet, and telemarketing, and falsely promise they will get loan modifications to make consumers’ mortgages much more affordable, or fully refund their money if they fail. They make these promises even to homeowners whose lenders have denied them modifications or who have been sent foreclosure notices. The defendants charge up to $2,600 for their supposed services and typically ask for half of the fee up-front, claiming a success rate of up to 100 percent.
- As alleged in the complaint, the defendants claim expertise that enables them to prevent foreclosure, and often mislead consumers to believe they are affiliated with, or approved by, consumers’ lenders. They tell consumers not to contact their lenders and to stop making mortgage payments, claiming that falling behind on payments will demonstrate the consumers’ hardship to lenders.
For the FTC press release, see FTC Charges Mortgage Relief Operation with Deceiving Distressed Homeowners.
For the lawsuit and related court orders, see:
- Complaint for Permanent Injunctive and Other Equitable Relief,
- Order Granting in Part and Denying in Part Motion for Preliminary Injunction and Asset Freeze,
- Amended Ex Parte Temporary Restraining Order with Asset Freeze, Appointment of Receiver, Expedited Discovery, and Other Equitable Relief and Order to Show Cause Why a Preliminary Injunction Should Not Issue.
(1) The named defendants in the FTC lawsuit are: U.S. Mortgage Funding Inc., Debt Remedy Partners Inc., Lower My Debts.com LLC, David Mahler, Jamen Lachs, and John Incandela, Jr., also known as Jonathan Incandela, Jr.
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