Homeowner Alert: Typically, the scam started with a flyer sent to the homeowner and many of these mailers look as if they may come from their lender or even the government. But, they are coming from scammers.

Many of these mortgage brokers, loan officers and real estate agents literally make me sick. Not all of them, but the vast majority does. I have to let this out because its really an epidemic of mammoth proportions and I am going to be the person that brings this to the public light because I have an obligation to.

What is the hottest business since subprime and over priced homes bought with unaffordable loans? Answer: Loan Modifications!!!! Everyone is doing it. Well, almost everyone.

I dont think there is one mortgage professional or real estate professional that is not performing loan modifications, short sales and even bankruptcys. Some legally, but most illegally and many have absolutely no idea what they are doing and its not about helping people, its all about the Benjamins.

But hell, they have to find some ways to pay that BMW 525 (they had to down size from the 750) and their also soon to be foreclosed homes because they are trying to get a loan modification too! So, the easy targets are the same people that made them thousands and millions.

The vulnerable and broken down consumers/homeowners are their victims.

Loan-modification scams are becoming more and more prevalent across the country, particularly in California, Brown said. California homeowners should be aware of the warning signs of foreclosure scams, so they dont fall victim to these cynical schemes.

They went from selling you toxic loans and cancerous homes to helping you fix the defective products for which they have sold you. Its a akin to having a serial killer help in the therapy of his victims and to assist in the clean-up of the crimes.

I dont know about you, but I dont think CSI is going to hire Richard Ramirez or Charles Manson to help them solve crimes. Yes, they may speak with them or study their criminal minds, but they arent on pay roll.

Just this week California Attorney General Brown and the California Department of Real Estate shut down and or arrested two loan modification companies operating illegally.

One company, The Firm in Rancho Cucamonga California was subject to a Fox 11 News investigative piece e and just days later, the Department of Real Estate shut them down.

Its appalling how these scammers took advantage of desperate homeowners and ripped them off for thousands of dollars, California Attorney General Edmund G. Brown Jr. said. Our campaign against mortgage scams masquerading as foreclosure assistance will continue and even intensify.

California Department of Justice Special Agents of the Bureau of Investigation and Intelligence arrested Rosa Conrado of San Bernardino, Saul Amador of West Covina, and Jesus Flores of Baldwin Park, believed to be members of the fraud ring.

In addition, arrest warrants have been issued for Juan Perez of Grand Terrace, and David Giron of Ontario, who are also suspected to be involved in the scheme. The Attorney Generals Office filed a 39-count complaint that includes multiple grand theft, money laundering and conspiracy charges against these suspects.

The scammers falsely told homeowners that they would renegotiate their mortgages, reduce monthly payments, and transfer any delinquent loan amounts to the renegotiated principle. The company demanded an up-front fee, ranging from $1,500 to $5,000, to participate in the loan-modification program.

The company also told the victims to stop any mortgage payments or communications with their lender, claiming they would interfere with the companys effort to negotiate the loan modification.

When victims complained that they were still receiving delinquency or foreclosure notices from their lenders, fraud-ring members told the victims that the mortgage loans had been renegotiated, but the lenders needed a good faith payment to secure the new accounts.

Homeowners made payments to accounts under business names such as Reinstatement Department or Resolution Department that made it appear as if the payment had been applied toward the loan. Bank records indicate that more than $700,000 was stolen from homeowners who fell victim to this scheme.