Prevent Loan Scams
States

Tennessee

 



Help for Distressed Homeowners 

 

The following is a list of legal service providers throughout the state that assist homeowners with foreclosure/loan modification needs and/or mortgage scams. 

Community Legal Center

Assistance:     Foreclosure
Location: Shelby County
Website: http://www.clcmemphis.com
Phone: 901-543-3395
Services: Serves the over 30,000 families in Shelby County whose incomes are between 125% and 175% of the poverty  level – those who simply cannot afford private legal counsel, but who earn enough that they do not qualify for Memphis Area Legal Services (under 125%).

 

Legal Aid of East Tennessee

Assistance:     Foreclosure
Location: Chattanooga, Cleveland, Johnson City, Knoxville, Maryville, and Morristown
Website: www.laet.org
Phone: Chattanooga (423-756-4013); Cleveland (423-479-8577); Johnson City (423-928-8311);  Knoxville (865-637-0484); Maryville (678-376-4545); and Morristown (423-587-4850)
Services: Legal Aid of Tennessee provides a broad scope of civil legal assistance and advocacy. 

 

Legal Aid Society of Middle Tennessee and the Cumberlands

Assistance:     Foreclosure
Location: Clarksville, Columbia, Cookeville, Murfreesboro, Oak Ridge, Davidson, and Williamson
Website: www.las.org
Phone: 800-238-1443
Services: The Legal Aid Society provides lawyers and paralegals to assist low-income Tennessee residents with their housing matters.

 

Memphis Area Legal Services, Inc.

Assistance:     Foreclosure
Location: Memphis and Covington
Website: http://www.malsi.org/
Phone: Memphis (901-523-8822); Covington (901-476-1808); or Fayette or Lauderdale County  (888-207-6386)
Services: Memphis Area Legal Services provides lawyers and paralegals to assist low-income Tennessee residents with their housing matters.

 

Southeast Tennessee Legal Services

Assistance:     Foreclosure
Location: Statewide
Website: www.selegal.org
Phone: 423-756-0128 or 800-836-0128 (outside Chattanooga)
Services: Southeast Tennessee Legal Services provides lawyers and paralegals to assist low-income Tennessee residents with their housing matters.

 

West Tennessee Legal Services, Inc.

Assistance:     Foreclosure
Location: Jackson, Dyersburg, Huntingdon and Selmer
Website: http://www.wtls.org/ 
Phone: 731-423-0616 or 800-372-8346, extension 200
Services: West Tennessee Legal Services’ housing counselors help families avoid the loss of their home through one on one counseling, advice, and advocacy.

 

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Report A Scam


Attention homeowners:  If you think you have been a victim of a scam, or approached by a scammer, report it to the Loan Modification Scam Prevention Network now!  Your complaint could provide vital information that will help put loan modification scammers out of business.  

Call 1-888-995-HOPE or click here to submit a complaint online. (With your permission, the complaint will automatically be shared with federal, state and local law enforcement)

How Do I Know if I Am a Victim of a Scam?

The easiest way to determine if you are a victim of a loan modification scam or have been approached by a potential scammer is just to ask yourself two simple questions:

  1. Did anyone offer to help modify your mortgage, either directly, through advertising, or by other means, such as a flyer?
  2. Were you guaranteed a loan modification or asked to do to any of the following: pay a fee, sign a contract, redirect mortgage payments, sign over title to your property, or stop making loan payments?

If the answer to either question is "yes," report the potential scam now by calling 1-888-995-HOPE or by filling out the simple online complaint form.

 

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Important Loan Modification Scam Rules and Laws

KNOW YOUR RIGHTS!

Important Federal Protections from Deceptive Foreclosure Rescue Practices

Click here for an overview of current rules and laws enforced by federal agencies nationwide against alleged scammers.

 If you think an individual or company has violated federal law, do two things: First, click on the ‘Report A Scam’ button to report the scam. Second, contact your Attorney General using the contact information provided below.

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List of Alleged Scammers


Distressed homeowners and their allies should be aware that many individuals and companies have been known to continue improper operations even after having been caught. Please visit our Nation-wide Prosecutions Against Alleged Scammers page to view a list of alleged scammers in Tennessee; the information found on that page is from publically available sources and is not exhaustive. Generally, homeowners seeking loan modification assistance are encouraged to work with HUD certified housing counselors, which can be found by going to http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm. Homeowners may also call the Homeowner's HOPE Hotline 1-888-995-4673 for free loan modification assistance.

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Important State Loan Modification Scam Rules and Laws


Tennessee has enacted state law that directly addresses loan modification scams.  Homeowners with a basic understanding of the law are less likely to become victims as they may be able to identify potential scams and illegal acivities.  

KNOW YOUR RIGHTS!

Tennessee Law Prohibits Advance Fees for Loan Modification Services (Tennessee Codes § 47-18-5401 and § 47-18-5402)

A new consumer protection law passed in 2009 by the Tennessee General Assembly prohibits the upfront payment of fees by homeowners to anyone assisting with loan modifications. For the most important provisions of this law, click here.

Rules Governing Attorneys Providing Loan Modifications

Why are foreclosure consultants and attorneys teaming up to defraud homeowners experiencing mortgage-related distress?  Individuals acting as “foreclosure consultants” are not entitled to receive payment until their loan modification work is completed.  However, attorneys are permitted to accept advance fees for providing typical legal services.  As a consequence, some foreclosure consultants and others offering foreclosure prevention services may partner with attorneys in an effort to get around laws that prohibit them from receiving payments from homeowners before providing the foreclosure prevention services. Homeowners should know that these partnering arrangements may violate the ethics rules governing attorneys’ professional conduct in Tennessee. For some examples of attorney misconduct relating to foreclosure prevention services that are prohibited by the Tennessee Bar, click here.

Secondary State Laws

The remedies referenced above are cumulative, and other statutory or common law remedies may also be available. There are additional state laws that may not address loan modification scams directly, but could be used for prosecuting or filing private lawsuits against alleged scammers. For more information on some of these additional state laws, click here.

 

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State and Local Law Enforcement


The following is a brief description of state and local law enforcement efforts underway in your state in the fight against loan modification scammers.  This information is not exhaustive and may change depending upon the resources and priorities of the state and local government officials and agencies.

Tennessee Attorney General’s Office

The Office of the Attorney General prosecutes individuals and businesses who engage in unfair, fraudulent, and deceptive business practices.  It enforces the Consumer Protection Act and works with the Division of Consumer Affairs in investigations and litigation involving deceptive advertising claims, predatory lending practices, and foreclosure rescue scams.

Resources:

Tennessee Department of Commerce and Insurance - Consumer Affairs Division

The Tennessee Division of Consumer Affairs works to enforce the state Consumer Protection Act and assist consumers and business owners who are victims of unfair business practices.  It regulates business practices, enforces truth in advertising, and alerts consumers to potential scams.  To file a consumer complaint, visit its website.

Resources:

Tennessee Department of Financial Institutions

The Tennessee Department of Financial Institutions has urged consumers to check the license status of any company offering mortgage loan modification services in Tennessee.  The website provides a look-up for consumers to research licensees.
  
Resources:

  • Website: www.tennessee.gov/tdfi
  • Phone: 615-253-2023                                                    
  • Toll-Free: 1-800-778-4215

 

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Additional Informational Resources


General Mortgage Fraud Resources (including Loan Modification Scams)


Better Business Bureau (BBB)

Homeowners can go to the Better Business Bureau's (BBB) website to research or file a complaint against a business.  Please note that a new business may not appear on the site.  There are branches of the BBB throughout the state.  To find the BBB nearest you, go to: http://www.bbb.org/us/find-a-bbb/.

Resources:      

Mortgage News Daily

Tennessee Alliance for Legal Services

Tennessee Attorney General’s Office

Tennessee Housing Development Agency

Tennessee Real Estate Commission

The Mortgage Fraud Blog

Other National Resources

 

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The Foreclosure Crisis in Tennessee


Tennessee was one of just nine states and the District of Columbia where the total number of residential foreclosures fell in 2009. According to RealtyTrac’s Year-End 2009 Foreclosure Market Report, published Thursday, January 14, 2010, Tennessee had 40,733 properties with foreclosure filings in 2009. That is a drop of 7.75 percent compared to 2008, but a 57.19 percent jump from 2007.  The foreclosure count means that roughly one in every 67 homes in Tennessee experienced some type of foreclosure activity during the year. It places Tennessee at number 17 nationally for its foreclosure rate.

 

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Disclaimer: This website is designed for informational purposes only.  It is not legal advice and is not intended to create an attorney-client relationship.  The Loan Modification Scam Prevention Network does not warrant any information contained in this guide, nor does the Network suggest that the information in this website should be used as a basis to pursue legal advice or decision making. 

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