LAS VEGAS– Las Vegas real estate experts are warning about a new form of loan modification scams. The scam finds ways to go around a new federal law preventing home loan modifiers from asking for money up front.
For those who try to keep their houses, there’s a growing class of financial predator. A federal law enforced this year halted one form of loan modification scams, while making some scam artists more clever.
Within the last six months, a federal law prohibited loan modification companies from asking for money up-front.
Metro Police hosted a few dozen homeowners at their Enterprise substation Tuesday afternoon. They want to get the word out about these scams and what people can do to avoid foreclosure in the first place.
Some homeowners who came say they’ve already lost thousands with no loan modification to show for it.
“Everybody’s in the same boat that I am, so I give him $1,500. They’ve never done anything over a year already,” said homeowner Nicolo Lombardo.
Loan modifications don’t fix everything. Realtors say 72 percent of Las Vegas homeowners that go through the process still end up in foreclosure.
Most homeowners at Metro’s informational event didn’t know they have the legal option to demand a mediation with their lenders.
Realtors, bank lenders and loan counselors are holding another event Thursday night at 6 p.m. It will be at Metro police’s training center on Cheyenne Avenue near Hualapai Way.