Las Vegas NowLoan Modification Programs Still having Trouble

Loan Modification Programs Still having Trouble

Scam artists trying to bilk desperate homeowners with the promise of modifying their loans aren't following a new law that's in place. Companies that claim they can help modify a loan aren't registering as fast the state would like.

The state extended a deadline hoping to get more people to get licensed, but that's not happening. November 2, 2009 is the deadline. Right now, 50 loan modifiers in the entire state have applied to be licensed and bonded, but only 18 have been bonded. Still though, none have been approved fully and time is running out.

"The bonding is more security for the clients. They know we can really help them out," said loan modification specialist Epi Seyberth-Weiner.

A bond between a client and loan modifier is based on trust. Seyberth-Weiner is doing whatever it takes to make sure she is compliance with the new law. "Background checks, FBI check, I went to the police station to get that done," she said.

Boxes of complaints have poured into the state's Business and Industry Department on people scamming homeowners out of thousands, claiming they can help modify loans but instead never do a thing.

"Weed out bad actors. When you put requirements in place, a lot of them will drop off, hopefully, because they have no intention of operating legally or ethically," said Elizabeth Daniels with the Nevada Department of Business and Industry.

Daniels says if loan modifiers do not attempt to get licensed, and bonded, the state can come after them. "The division has the ability to asses fines, issue cease and desist orders, revoke licenses and if it were to raise to a certain level, we can turn it over for criminal enforcement," she said.

Daniels says since this is a new law, it's also new for insurance companies who are working with legitimate modifiers to get bonded. It's best to always check with the state's business and industry department to see if the loan modifier you are using is bonded and licensed.