6 Mortgage Relief Scams To Avoid - #4

Advising you to stop contacting your lender

In March 2012, three scammers were arrested on charges of committing fraud against California homeowners. They were Gregory and Cynthia Flahive, ex-spouses and co-owners of Flahive Law Corporation, and the firm's managing attorney, Mike Johnson.
In addition to requiring upfront fees in exchange for loan modification assistance, the Flahives told one homeowner to reject his lender's offer of a loan modification. They told that homeowner that they could get a better deal. Instead, the home was lost to foreclosure within four months.
Be wary of anyone who tells you to stop paying your lender or who tells you to stop trying to contact your lender. Don't trust someone who says they will talk to your lender on your behalf. Always talk to your servicer directly.