Colorado, California Collaborate To Shut Down Loan Modification Scams

Buried in a recent story in the Rocky Mountain News on a homeowner claiming to have been screwed out of about $3,000 by a loan modification firm is this excerpt:

• In addition to the [16 subpoenas sent to loan modification companies in Colorado, California and Arizona, Colorado director of the division of real estate Erin], Toll also recently entered into what she calls an "unprecedented collaboration," with Jeff Davi, the division of real estate director in California.

• "(Davi) has agreed to work closely with us to shut down illegal loan modification companies that prey on consumers when they are most vulnerable," Toll said. "Mr. Davi is well aware of the problem and will do everything possible to ensure Colorado consumers are not harmed by unlicensed California companies."

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• Davi, in a phone interview Tuesday, said he is "very pleased with our relationship with Colorado and Erin," and hopes to build similar relationships with state real estate divisions across the country, because the practices have become so widespread.

• "These companies are based everywhere," Davi said. "I heard of one yesterday where a 75-year-old California woman gave her last $2,000 to a company out of Massachusetts. It is the saddest thing I ever heard."

For more, see Loan modification firms causing more problems for homeowners.