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Mortgage relief business shut down

Mortgage relief business shut down

By Daniel Gutierrez. CREATED Jul 9, 2013

The government has shut down a mortgage relief business.

The Federal Trade Commission has filed a lawsuit, claiming 7 companies falsely promised lower monthly payments and interest rates to distressed homeowners.

They're accused of falsely claiming they would provide legal help to save homes from foreclosure. They reached out to potential clients by sending out mailers that told homeowners to act quickly before they “forfeit legal rights."

The FTC says the companies charged up-front fees of $2,000 to $4,000, in violation of federal law.