If President Obama is serious about forming a new unit to prosecute financial and mortgage crimes, the first place he should look is at operators who are fleecing desperate homeowners. Scams that target these down-on-their-luck folks are rampant.
State attorneys general are playing whack-a-mole with these shysters, who are exploiting homeowners who just want to avoid foreclosure.
The scam is simple: Companies take upfront fees to save homes from foreclosure or provide debt management services. The services are never delivered and financially ailing homeowners go deeper into the hole and often lose their houses anyway. The companies often advertise as debt “repair” counselors or mortgage “rescue” operations.
There’s a wave of these crimes, which have mushroomed throughout the country. Here’s a sampling of the most recent prosecutions, courtesy of the National Association of Attorneys General:
