An Eden Prairie-based loan modification company is accused of taking homeowners' money but not modifying their loans.
Modify My Loan US, allegedly defrauded 200 homeowners, mostly from Minnesota, by charging homeowners fees ranging from $2000 to $3000 to modify mortgage loans, Minnesota Commerce Commissioner Mike Rothman said. However, Rothman's department found no evidence that Modify My Loan US and similar companies had successfully modified any loans.
"Modify My Loans and a bunch of these companies actually are scam artists and fraudsters, ask for advance fees, get two-to-three thousand dollars and rip them off," Rothman said.
The Commerce Department has issued cease and desist orders against Modify My Loan US and several other companies offering similar services.
"We've required the surrender of their license and many others like them," Rothman said. "The bottom line is we want everyone to be aware and be very cautious about these scam artists."