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Loan Modification Scam 9/5/12 9.00a AF

Homeowners from Santa Cruz and Watsonville are being warned about a loan modification scam by the Santa Cruz County District Attorney’s consumer affairs report.      The scam targets homeowners on the brink of foreclosure.    Alleged salespeople are going door to door claiming to be able to stall sale of the house, as long as the homeowner gives them their mortgage payment.   The Consumer Affairs department warns homeowners that this practice is illegal, and urges them to avoid paying anyone but their lenders.    They say that most of these operations, some of which are advertised in newspapers or on TV, usually yield no positive results.      

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