MFI-Mod Squad Launched to Bust Foreclosure Rescue and Loan Modification Scams

ICYMI National Mortgage News profiled MFI-Mod Squad. MFI-Mod Squad is a new project started by MFI-Miami. The project is designed to expose shady foreclosure rescue and loan modification scams.

By James Comtois, National Mortgage News
February 4, 2009

Steve Dibert, the founder of MFI-Miami LLC, a Florida-based forensic mortgage fraud investigation and forensic mortgage auditing firm, has launched a new Boynton Beach, Fla.-based loan modification investigative firm to uncover and expose foreclosure rescue and loan modification schemes.

The new firm, MFI-Mod Squad LLC, has recently been established to expose illegally run loan modification and foreclosure rescue companies and the people who run them. These firms convince desperate homeowners to pay them huge upfront fees by playing on homeowner’s fears when their real intent is to take the homeowner’s money and run.

Many of these companies operate by doing business in states that have not adapted their laws to include loan modifications. They solicit clients in states outside their own even if the state where the homeowner lives have laws that govern loan modifications. This is done intentionally because they think the client won’t know how to find them or they think a homeowner facing foreclosure does not have the funds to pursue them across state lines or in federal court.

Scam Modification Firms Use Affiliates Or Resellers

According to MFI-Mod Squad, some of these scam companies even use “affiliates” or “resellers” to collect the money for them in an attempt to shield themselves from prosecution. Some of these companies are even run by convicted felons who are barred from working real estate or lending.

“These people think they’re smarter than you and they think they can get away scot-free,” said Mr. Dibert. “I want to give homeowners the protection they need to protect themselves from being kicked while they are down.”

According to Mr. Dibert, MFI-Mod Squad has three purposes. The first is to give homeowners a place on the Internet where they can educate themselves about loan modifications and loan modification companies so they can protect themselves from being taken advantage of. The website is in a blog format so homeowners can share their stories about loan modifications.

Second, MFI-Mod Squad wants to give homeowners a place where they can get help investigating unscrupulous loan modification companies. If a homeowner feels they have been conned by an unscrupulous modification company or feels the loan modification company is operating outside the law, MFI-Mod Squad will investigate the company for no charge.

Third, MFI-Mod Squad will publicly expose these unscrupulous companies and use the power of the Internet to shut them down. Once MFI-Mod Squad completes its investigation, the report will be posted on the website and a copy will be immediately sent to state and federal law enforcement officials and regulators for further action.

According to the company’s blog, MFI-Mod Squad exposed three mod companies in California that were in violation of California Department of Real Estate regulations during its first week in business.

According to the new company, MFI-Mod Squad also intends to promote legitimate loan modification companies that play by the rules and eager to expose scam artists out of the industry. Those companies will be encouraged to contribute as will consumer advocates, attorneys, and law enforcement.