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02/23/10

Struggling California Homeowners Warned against Phony Foreclosure Audits

As the foreclosure crisis persists, unscrupulous scammers continue to devise new ways of defrauding distressed homeowners.  On February 22, the California Attorney General's office teamed with the California Department of Real Estate and the State Bar of California to warn homeowners about forensic loan audits, a scheme that is unfortunately becoming more prevalent.

Companies advertising forensic loan audits claim that they will examine the home loans of homeowners facing foreclosure to determine whether the mortgage originators complied with state and federal laws in issuing the loans.  The companies charge large upfront fees and often promise high rates of success in helping their clients avoid foreclosure, but seldom do they ever deliver on those guarantees.  Homeowners who are facing the threat of foreclosure should never pay upfront fees for foreclosure prevention services.  Reputable help is available for free from HUD-certified housing counseling agencies.

For more information, read the Sacramento Bee article, "Struggling California Homeowners Warned against Phony Foreclosure Audits."