We have all seen recent reports of how the mortgage and real estate markets are beginning to move upward after what was nothing short of a historic meltdown that occurred over the past year-plus. While home purchases and property values seem to be moving in a positive direction around the country, that pattern has not yet taken hold in Las Vegas, which remains mired in a state of defaults and mortgage foreclosures. As a result, innumerable mortgage modification companies are operating in Nevada, and many of them are doing so illegally and are defrauding their customers at an alarming rate. Now comes word that government officials on several levels are getting involved to enforce the relevant laws and regulations.
According to the Las Vegas Review-Journal:
“State and federal officials are joining forces to combat rampant mortgage relief scams, federal and state officials announced Tuesday.
The offensive against fraudulent foreclosure-prevention and mortgage-modification companies, named “Operation Stolen Hope,” was announced by Senate Majority Leader Harry Reid, Federal Trade Commission Chairman Jon Leibowitz and Nevada Attorney General Catherine Cortez Masto in Las Vegas.
Fraudulent mortgage and foreclosure operations are not just small-time criminal operations anymore, Cortez Masto said.
Some mortgage scammers have offshore bank accounts, fake IDs and false Social Security cards. Other criminal activities have been tied to some of the same groups, including child prostitution.
“At least one individual was on the United Kingdom’s top Mafia 10 most-wanted list,” the state attorney general added.
The commission may opt to pass rules forbidding businesses to take up-front fees from borrowers.
Typically, the hallmark for mortgage modification scams is a request for up-front payment, Leibowitz said.” (Emphasis added by editor)
Not only will companies face criminal scrutiny, but they should also encounter civil liability from those they’ve defrauded. Personal injury law includes financial wrongdoing, and if you or someone you love has been wronged in this manner, you need the help of a Las Vegas personal injury lawyer who understands these rules and regulations and how to hold these companies accountable. Contact Jack Bernstein & Associates today to schedule a free initial consultation.
Wed, Nov 25, 2009
Lawyers that answer their phones, Personal Injury