Today, the Federal Trade Commission announced another series of crackdowns involving questionable mortgage modification deals.
Last month, we told you how a Florida-based mortgage modification company took advantage of a low-income single mom who was about to lose her home.
Mary Ann Borney Graves took the tempting bait offered by Bluefox Financial, which insisted it could "modify" her mortgage. A company representative asked Ms. Graves to fax him about six pages of personal information. The company then faxed the same information to her lender. Bluefox charged Ms. Graves nearly $1,000 for something she could have easily done herself. A Blue Fox representative defended the transaction, insisting that the company did everything it promised.
Ms. Graves's leader, Home Eq, told us Blue Fox did nothing that Graves couldn't have done herself for free. "If you're calling specifically about what that company did they really didn't do anything except give us her financial information, which she could have done on her own behalf," the Home Eq representative told us.
The FTC announced a similar crackdown in April, the Federal Trade Commission sued companies it claimed were involved in mortgage scams. Blue Fox was not one of the companies identified by the FTC. Still, the allegations raised against those companies are similar to Ms. Graves's complaints about Blue Fox.
So, how can you avoid stumbling into a deal you may regret? The Better Business Bureau offers some good advice.
The St. Louis Urban League has a free program that will help you too.
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