Thursday, September 13, 2012

6 Mortgage Relief Scams To Avoid - #6

Mass joinder scam

Fake and even legitimate law firms send notices to homeowners, including some who are not in  financial distress, that claim the homeowners have been wronged by their lenders and may be eligible for restitution.
The homeowners are told to pay $2,000 or more to become part of the lawsuit, but no one should ever pay to be part of a class-action suit.
The Precision Law Center participated in a mass joinder scam, in which borrowers are invited to file separate lawsuits but share legal fees.
Generally, these kinds of scams get 1,000 homeowners or more, each paying an average of $3,000. Sometimes an actual lawsuit is filed on the homeowner's behalf, but usually the suits are kicked out of court immediately for lack of evidence.
Never pay a fee to become part of a class-action lawsuit. Anyone who guarantees a loan modification from your lender or guarantees that a foreclosure can be prevented cannot be telling the truth.

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