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Consumer Alert

'Mass Joinder' Lawsuits or Class Action Litigation

California Department of Real Estate (DRE) and the BBB has released consumer warnings about 'Mass Joinder' Lawsuits or Class Action Litigation scams.

The Better Business Bureau (BBB) warns homeowners to steer clear of mailings asking them to join national “mass joinder” lawsuits to force their mortgage companies to cut their loan payments.

Michelle Corey, BBB president and CEO, says the mailings are a new twist on schemes to obtain up-front payments of $5,000 or more from homeowners struggling to pay their mortgages.

See related video ‘Mass Joinder Lawsuit Hustlers Exposed”: http://youtu.be/R4AyzE3Gs0E

This alert is written to warn consumers about marketing companies, unlicensed entities,
lawyers, and so-called attorney-backed, attorney-affiliated, and lawyer referral entities
that offer and sell false hope and request the payment of upfront fees for so-called “mass
joinder” or class litigation that will supposedly result in extraordinary home mortgage
relief. They are making a wide variety of claims and sales pitches, and offering impressive sounding legal and litigation services, with quite extraordinary remedies promised, with the goal of taking and getting some of your money.

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HIDDEN MONTHLY FEE’S

Beware of cunning and scrupulous attorneys that have hidden clauses buried in the fine print that require a certain % of savings, as high as 30% as an example, if they successfully modify your mortgage to a lower payment. You should only pay one fee--otherwise you could be forced to pay potentially hundreds of dollars a month for the life of the loan. Always read the whole contract in full or have a professional, family member or friend assist you if you are unable to.

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FORECLOSURE RESCUE SCAMS

As property values continue to decline across the country, fraudulent “foreclosure consultants” (con artists) target homeowners who are behind on their mortgage payments. Here's what you can do to avoid becoming a victim:

1.DO NOT pay your mortgage payments to someone other than your lender, even if they promise to pass the payment on to the lender. Fraudulent foreclosure consultants often keep the money for themselves and disappear.

2.DO NOT sell your house or transfer he title to the “foreclosure rescuer”. These fraudulent foreclosure consultants often promise that if you transfer the title to them, you may stay in your home as renters and buy it back later. This is a common scheme used to evict homeowners and steal all or most of their home's equity.

3. DO NOT sign any documents without reading and understanding them first. If the document is too complex, seek advice from a lawyer or an approved, trusted financial counselor. Never sign documents with blank spaces that can be filled in later by the other party or one that contains errors or false statements, even if someone promises to correct them later. Get promises in writing and keep copies of all contracts you sign. Many homeowners think that they are signing documents for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership to the "foreclosure rescuer".

If you think this may have happened to you, you may be a victim of a crime and need to file a complaint with your States' Attorney General's Public Inquiry Unit. Reporting con artists and suspicious schemes helps prevent others from becoming victims.

Read real testimonials from real people.

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BANKRUPTCY FRAUD

There are several scams circulating that are abusing the bankruptcy laws. For example, a con artist may offer to obtain refinancing or negotiate a payment plan with your lender and even may even file a bankruptcy case in your name, without your knowledge, as a part of the scam.

In another kind of scam, a con artist may ask you to give a partial interest in your home to one or more persons. Each holder of a partial interest can then file bankruptcy, one after another. The bankruptcy court will issue a “stay” order each time to stop foreclosure temporarily. However, the stay does not excuse you from making payments or from repaying the full amount of your loan.

If you think this may have happened to you, you may be a victim of a crime and need to file a complaint with your States' Attorney General's Public Inquiry Unit. Reporting con artists and suspicious schemes helps prevent others from becoming victims.

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REFINANCE FRAUD

Beware of people posing as mortgage brokers or lenders and offering to refinance your loan so you can afford the payments. Con artists will trick you into signing documents for a new loan and but in fact you are signing over the ownership of your home. Always read and understand reading of all documents.

If you think this may have happened to you, you may be a victim of a crime and need to file a complaint with your States' Attorney General's Public Inquiry Unit. Reporting con artists and suspicious schemes helps prevent others from becoming victims.

See if you qualify for the U.S. Loan Modification Plan, fill out the no obligation Quick Quote form now!

Many fraud abuse cases start out as free consultations by “counselors”. Do not give out your information with other Websites.








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National Mortgage Help Center
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The National Mortgage Help Center (NMHC) educates the general public and refers your contact information, at no cost to you, to evaluate qualifications for a mortgage payment reduction. NMHC is not a non-profit organization and not affiliated or approved with any replica tag heuer government program. By applying with NMHC does not guarantee a reduced monthly mortgage payment, and the lender may not approve to change your loan.