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09/02/11

Loan Scam Network Featured on MarketWatch

"You can find the red flags and much more about loan scams at preventloanscams.org, a project of The Lawyers’ Committee for Civil Rights Under Law, a nonpartisan, nonprofit organization formed in 1963 at the request of President John Kennedy.

Several federal agencies, the Secret Service among them, have used this invaluable resource to gather information on mortgage rescue scams. Yolanda McGill, senior counsel for the Lawyers’ Committee, says 178 officials from 48 state, local and federal enforcement agencies have received credentials to search this rich database assembled by her group’s Loan Modification Scam Prevention Network.

As of July 31, the clearinghouse contained nearly 16,500 reports of alleged loan scams submitted by consumers. Nearly half of those were collected this year alone, an indication, McGill says, that rip-off specialists are still going strong.

The Raleigh-based attorney, who not only speaks for consumers but also the Carolina Rollergirls as the announcer for the local roller derby team, says the complaints collected over the last six months show some patterns that everyone should be aware of.

For example, more than one in four reports allege that an attorney or legal representation was part of the scam. Also, more than half the asserted rip-offs were perpetuated by outfits or individuals in California and Florida. And more than a third of the homeowners who filed the complaints identified themselves as seniors over the age of 50."

 

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