Department of Real Estate Warning: False and Misleading Designations and Claims of Special Expertise, Certifications and/or Credentials

By Wayne S. Bell
Chief Counsel --
California Department of Real Estate

The DRE has issued prior warnings and alerts to consumers and licensees alike about the flood of fraud in connection with pre-foreclosure and foreclosure-related rescue, forbearance and forgiveness services on behalf of financially distressed homeowners, including loan modifications, forensic loan audits, and short sales.

The DRE has noticed an increase in the use of questionable and possibly misleading terms such as "expert", "certified", and "specialist" in the marketing and advertising of assistance to anxious homeowners in connection with their home loans and foreclosure rescue services and short sales A growing number of individuals and companies, many of whom are unlicensed, purport to be "experts" in the area of short sales, "certified" forensic loan auditors, short sale "specialists", loan modification "specialists", loss mitigation “experts”, “fraud investigators”, and the like, and many of these designations and claims seem to be nothing more than marketing ploys by unscrupulous fraudsters to capitalize on the desperation and vulnerability of unsophisticated and/or financially strapped homeowners.