California's attorney general announced more than $4 million in penalties have been levied against defendants in a national loan modification scam. Half of the money will go to consumers who were duped.

California's attorney general announced more than $4 million in penalties have been levied against defendants in a national loan modification scam. Half of the money will go to consumers who were duped.

New scam involving phony “forensic audits” of mortgage loans is the latest variation on loan modification scams. An article in the Sacramento Bee this week, reported that California Attorney General Jerry Brown warned California’s distressed homeowner’s to refrain from forensic review of their mortgage loan and lender’s practices.

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Loan Modification - Is It Worth Trying? A year and half ago, the government launched a loan modification program to help homeowners. The federal government's

Mortgage modification -– Five people have agreed to repay millions of dollars to victims who they duped by promising to help them reduce their mortgage payments but providing no services after receiving their fees of $4,250.

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