The state of Utah is no stranger to foreclosures, but the increasing amount of these properties has left some homeowners susceptible to foreclosure prevention schemes.

Recently, Utah residents have seen an increasing number of advertisements offering loan modifications or foreclosure rescue plans, but these programs require up -front fees.
Many homeowners have complained, claiming they paid up-front fees to companies for home loan modifications, but these companies never delivered on their promises. As a result, FBI agents in Salt Lake City who specialize in mortgage fraud investigations have joined forced with the Utah Department of Commerce to warn homeowners against taking part in these programs.
Timothy J. Fuhrma, FBI special agent in charge, said, ““We want to warn homeowners before it’s too late.

Usually, by the time someone reports a problem, they’ve been victimized. We want consumers to know how to spot a scheme and where they can get the legitimate help they need if times get tough.”
There are homeowners who have paid as much as $2,000 in fees, filled out paperwork, and were told the companies would modify their loans, but have yet to see any loan modification. Some companies accused of doing this have said the homeowner didn’t qualify for a loan modification, but consumers aren’t notified of this until after they’ve paid the company.
Francine Giani, executive director of the Utah department of commerce, said, “Foreclosure rescue scams are possibly the most egregious of all consumer scams. Here homeowners lose twice. They lose their home and their money to fraudsters who prey on their desperate situation with nothing to offer but empty promises.”