Loan Modification Scam Prevention Network Spotlight

The Second Wave of the Foreclosure Crisis

The Lawyers’ Committee for Civil Rights Under Law and its coalition partners in the Loan Modification Scam Prevention Network (LMSPN) have been tracking the foreclosure rescue fraud epidemic since early 2010. As of early 2014, the national Loan Modification Scam Database, managed by the Lawyers’ Committee, had compiled more than 40,000 complaints representing reported homeowner losses totaling over $90 million.

 The Lawyers’ Committee released several 2014 reports illustrating the impacts of this ongoing fraud crisis and the opportunities all consumers have, through the efforts of the LMSPN, to prevent these scams. As these reports illustrate, foreclosure rescue scams destabilize communities, devastate non-English speaking households and diminish the ability of distressed homeowners to reach legitimate advocates who can provide the real help they need.  During Fair Housing Month (April) 2014 the Lawyers’ Committee released “Foreclosure Rescue, Inc.”, a comprehensive report examining this fraud epidemic, scam trends and efforts to combat this fraud. All of these reports can be found under the Publications and Testimony tab below.