FTC Issues Ruling to Protect Home Owners From Relief Scams

Finally a little support for the regular guy/gal!  The FTC (Federal Trade Commission) has set a ruling to make it illegal for anyone to collect up front fees from home owners in a mortgage crisis.  This ruling has a direct impact on services for loan modifications and short sale modifications.  After hearing thousands of complaints about a servicer collecting fees up front for services not received this ruling will stop many of them.  In truth we know many will try to find a way around this.  Share this information with friends and family to make certain they do not get caught up with any service trying to collect

From the FTC ruling located at http://www.ftc.gov/opa/2010/11/mars.shtm

Attorneys are generally exempt from the rule if they meet three conditions: they are engaged in the practice of law, they are licensed in the state where the consumer or the dwelling is located, and they are complying with state laws and regulations governing attorney conduct related to the rule. To be exempt from the advance fee ban, attorneys must meet a fourth requirement – they must place any fees they collect in a client trust account and abide by state laws and regulations covering such accounts.

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