New Type of Mortage Fraud: Loan ‘Modifiers’ Hijack Payments

Mortgage debt

by Rita Robinson

It looks legitimate: You get a letter from your bank saying that it’s sold your mortgage to another company. So you begin making payments to the new address in the letter.

But, it turns out, it’s yet another mortgage fraud. Two Nevada men have been arrested operating businesses designed to steal mortgage payments from consumers. Joseph Yorkus and James Bartczak were booked on charges in connection with this attempted scam, Nevada Attorney General Catherine Cortez Masto said in a statement.

In February, Yorkus and Bartczak were arrested and charged with setting up the business “Great Western Business Services,” alleged to have been used to embezzle homeowners’ mortgage payments.

Letters sent to homeowners instructed them to make mortgage payments to Great Western rather than Bank of America, which actually owned the loans. The scam caused victims to miss their actual mortgage payments, an action that could lead to foreclosure.

Last week’s arrests are based on new allegations that in addition to fraudulently operating Great Western Business Services, Yorkus and Bartczak also ran three other fraudulent companies, “BAC Collections,” “Fresh Start Consultants” and “Learn Your Rights,” to convince homeowners to pay their mortgages through those businesses.

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