MFI-Mod Squad Created To Expose Scam Artists

Steve Dibert, founder of MFI-Miami, LLC, a forensic mortgage auditing firm in West Palm Beach, Fla., is launching MFI-Mod Squad LLC, to expose illegally run loan modification and foreclosure rescue companies and the people who run them. According to Mr. Dibert, these firms convince desperate homeowners to pay them huge upfront fees by playing on homeowner's fears when their real intent is to take the home owner's money and run. Many operate by doing business in states that have not adapted their laws to include loan modifications, he said. They solicit clients in states outside their own even if the state where the homeowner lives has laws that govern loan modifications, Mr. Dibert said. "This is done intentionally because they think the client won't know how to find them or they think a homeowner facing foreclosure does not have the funds to pursue them across state lines or in federal court. Some of these companies are even run by convicted felons who are barred from working real estate or lending." He hopes the site will give homeowners a place on the Internet where they can educate themselves about loan modifications and these companies so they can protect themselves. The website, www.mfi-modsquad.com, is in a blog format so homeowners can share their stories.