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Released: November 27, 2012

Mortgage lender uses fear as a sales pitch

Source: David Lazarus, L.A.Times (Free Registration)

State and federal authorities may have cracked down on unscrupulous mortgage lenders to avoid a repeat of the housing market meltdown, but there are still plenty of companies that are eager to dupe people into taking out bad loans.

Exhibit A: Companies sending official-looking letters that seem to say you have to take action or else your home loan will be in trouble. The letters, of course, aren't from a government agency. They're from some business trying to get you to refinance.

And now an Irvine company called Network Capital Funding is taking the questionable sales pitch up a notch. It's sending out a letter that claims to be the "second notice" a homeowner is receiving, even though there never was a first notice, and it's doing its best to masquerade as a money-saving federal program.

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