Prevent Loan Scams

News Clips


For many homeowners, false hope

"Marlon Hernandez was sick with worry that he would lose his Malden home to foreclosure two years ago. Then the Salvadoran immigrant heard a Spanish-language radio advertisement that sounded like the answer to his problems.

In the ad, Revere lawyer David Zak said he helped troubled homeowners negotiate with banks. Hernandez paid Zak $5,600 to help lower his unmanageable monthly mortgage payment. But Hernandez said he never got the promised services. [...]

'These for-profit loan-modification companies are making a bad situation worse,' said Jon Greenbaum, chief counsel of the Lawyers’ Committee for Civil Rights Under Law, a Washington, D.C.-based nonprofit that is spearheading a national campaign against mortgage scams. 'Vulnerable homeowners come in contact with someone posing as an expert and offering to help them negotiate better mortgage terms. Little do they know it’s a scam.'"

Click here to read the full story at the Boston Globe.