“Lenders Trust Account”
In this version of foreclosure scam, the borrower is told to make payments into a “Lenders Trust Account” for a few months before their loan modification is approved. The money entrusted to be paid to the mortgage company is then taken by the con artists, and none is paid to the mortgage company. Borrowers are told not to talk to either the bank or their lawyers. In the end, the home is lost.
A group of companies and individuals doing business as HOPE Services, are telling consumers who face foreclosure that they could receive help from government-backed programs such as Making Home Affordable, but only after they made three monthly trial payments into a so-called mortgage lender’s trust account, according to the Federal Trade Commission.
There’s no connection with Hope Services llc. Loan modification scams sometimes use the word “hope,” because legitimate government programs often use that term.
And there are those who “guarantee” a loan–for a price.
Using her supposed “faith”, Ms. Fuentes convinced people to give her $1,500 to change the interest rates on the home mortgages. Sometimes, she even promised to change the amount of the loan.
Of course, Ms. Fuentes did nothing but cash the checks. And break the law, as charging up front fees are illegal in California.
“She guaranteed us that we would get the loan,” said Gloria Moreno. “If not, we would get every penny back. So then she asked us for $1500. These are the checks that she cashed and she cashed them right away.”
If you are facing foreclosure, phone Axsmith Law LLC to discuss mediation or your other options. (202) 285-5415.