Following the lead of states like Minnesota… the Federal Trade Commission (FTC) is proposing a new rule that would prohibit for-profit loan modification companies from charging an upfront fee for services. Companies would also have to disclose to consumers that they are for-profit, total fees they will charge, clearly state that they’re not associated with the government or the lender, and the fact that there’s no guarantee that the lender will agree to a loan modification. Many of these proposals are already in effect in Minnesota.
There is a Federal Register published and the public comment period closes on March 29. You can view the Federal Register, here.
For more details, visit http://www.ftc.gov/opa/2010/02/mars.shtm
The Center has repeatedly warned homeowners about exercising caution when working with ANYONE in a foreclosure situation. We've even created a fact sheet (available here) to help homeowners.
To find your local non-profit, FREE Foreclosure Counselor, click here. For additional information about preventing foreclosure in Minnesota, click here.