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07/02/11

CA Lawsuit Goes After Loan Modification Fraud

The LMSPN's case against a fraudulant loan modification scheme in the San Jose, CA area has been picked up by SF Gate:

"Struggling homeowners desperate to avert foreclosure seem like easy prey to some scam artists, who charge money to help them get loan modifications and then don't deliver, according to consumer advocates who say the problem is particularly acute in California.

Bay Area attorneys in June filed one of California's first class-action lawsuits against alleged loan-modification scammers, although one of the defendants says he was also a victim.

"The complaint alleges that these individuals abused the trust (of the victims) to take advance fees for work that either was never performed or performed in a manner that had little to no chance of success," said James Zahradka, supervising attorney at the nonprofit Law Foundation of Silicon Valley.

It filed the lawsuit in Santa Clara County Superior Court, along with the Lawyers' Committee for Civil Rights Under Law, a Washington nonprofit, and Orrick, Herrington & Sutcliffe, a law firm whose Menlo Park office is working on the case pro bono." [...]

Read the full article here.