Mortgage Assistance Relief Services (MARS)

Posted on October 11, 2012 by Buyer Broker

Mortgage Assistance Relief Services (MARS) establishes rules for “for-profit” companies that, in exchange for a fee, offer to work on behalf of consumers to help them obtain modifications to the terms of mortgage loans or to avoid foreclosure on those loans. (i.e., Help homeowners with Short Sales and loan modifications.)

Final FTC Ruing on the law http://ftc.gov/os/fedreg/2010/december/R911003mars.pdf

The FTC ruling basically would:

  • prohibit providers of such mortgage assistance relief services from making false or misleading claims;
  • mandate that providers disclose certain information about these services;
  • bar the collection of advance fees for these services, except in certain circumstances for attorneys who collect them in connection with preparing or filing documents in bankruptcy, court, or administrative proceedings;
  • prohibit anyone from providing substantial assistance or support to another they know or consciously avoid knowing is engaged in a violation of the Rule; and
  • impose record keeping and compliance requirements.
    making false or misleading claims;

    Recent legal action against 3 such organizations in the Newport Beach area has prompted the FTC to shut down their operations. Source: http://blog.pe.com/real-estate/2012/10/10/real-estate-ftc-crackdown-on-mortgage-scam-leads-to-newport-beach/

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