Distressed Homeowners Beware Scams Promising to Sue Your Lender.

I met with one of my sellers last night to discuss our strategy going forward.  We are in a short sale situation and the homeowners have fought the long hard fight to keep up with the mortgage payments.

They recently received a mailing that for all intention purposes looks like an invitation from a legal firm to join in on a lawsuit suing their mortgage bank for “fraudulent lender practices“.  They call it a “Mass Joinder Litigation Lawsuit” it looks official to the homeowner.   However, it does not take much digging to find out that all of these California law firms do not have a case.   As a matter of fact there is a gentleman that is asking everyone that ever gets one of these mailings sends it to him and the California Bar Association.

It seems these “MASS JOINDER LITIGATION LAWSUIT” mailers are very somewhat questionable.  I actually followed up on my clients mailer.  They ask you to go to a website and enter all your personal information (RED FLAG #1), then they ask for all of your loan information (RED FLAG #2),  Then they ask for you to pay them a FEE upfront for negotiating a loan modification on their behalf (RED FLAG #3).  Just one of these red flags are enough to have you think twice about going forward with any such offers.  To have three red flags like this though is just way to much.

Please be aware that there are many unscrupulous people out there that are constantly looking for a way to make money off of unknowing people.  As a Realtor® we are not only ethically bound but legally bound to tell the truth.  I can speak personally for everyone in my firm that we we tell you exactly where you stand and what are all of your options, whether it means we will earn a commission or not.  Our primary concern is what is best for you.

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