After all of the trouble in the mortgage industry, one aspect continues to worsen an already bad situation; mortgage debt scams. Many homeowners have suffered enough under the pressure of an impending foreclosure and many more have become victim to mortgage relief scams, leaving them out of money and out of home. However, perpetrators of such scams are now being met with lawsuits more than in years past.
Violations Of Trust
Two attorneys are in the hot seat in court this week, facing criminal charges for allegations of mortgage fraud. These two attorneys allegedly took part in an “unlawful mortgage relief scheme that preys on financially distressed homeowners nationwide by falsely promising a loan modification in exchange for an advanced fee”.
The two attorneys came up on the radar after many complaints were filed with the Consumer Financial Protection Bureau. Despite incriminating evidence revealed in a CFPB investigation, the two still hold their plea of innocence; stating the charges are based on a “statistically insignificant but vocal group of disgruntled consumers,” while ignoring his firm’s “overwhelming majority of satisfied customers.”
While the jury is still out on the conclusion of the case for these two attorneys, investigations continue for many other lawyers around the country. In California, more than 100 lawyers have been disciplined or disbarred for similar actions; and 200 other are facing impending charges.