13/09/2009

Why do consumers fall prey to loan-modification and foreclosure-prevention rip-offs?

Harold Kirtz, the FTC lawyer and FTC's assistant director for financial practices and coordinator of Operation Loan Lies, a federal-state effort that has targeted 189 companies suspected in mortgage-modification or foreclosure-prevention scams believes:

 

"even well-educated, financially knowledgeable consumers can fall prey to loan-modification and foreclosure-prevention rip-offs because "they are in a very vulnerable state," threatened with the loss of the roof over their head. As a result, they don't ask the questions they should, and they don't look for indicators of potential fraud.