In the battle against foreclosure and loan modification fraud, Attorney General (AG) Jerry Brown ordered over 380 mortgage foreclosure consultants to register with the AG’s office and post a $100,000 bond each. Letters were sent to each to post the required bond and register within 10 days, or provide justification as to why they should be exempt.

If the companies don’t register, post bond, or show good reason not to, criminal penalties could be imposed for up to one year in jail and fines up to $25,000 per violation. Consultants who received AG letters are located in Los Angeles, Orange and San Diego Counties, the Inland Empire and the Bay area.

More than 25 other companies were ordered to defend boastful loan modification claims made in glossy online and mail advertising that appears suspicious. Throngs of homeowners have been deceived by arrogant advertising promising the undeliverable, along with money back guarantees. According to Imperial Valley News, Brown stated that the rogue industry now needs to become accountable. It will either participate in the cleanup or be subject to legal action.

In August, Brown joined the State Bar of California, along with the California Department of Real Estate, in a new partnership in the battle against foreclosure and loan modification fraud. One of Brown’s top priorities is to identify and deter this type of fraud.

In conjunction with a nationwide cleanup in July, Brown identified 14 companies and 21 individuals who took advantage of innumerous homeowners looking for mortgage relief. So far, Brown has submitted court orders to take down 32 companies in California. He’s brought criminal charges against and obtained lengthy jail sentences for consulting companies acting deceptively in loan modification practices.

Brown unveiled his new anti-loan modification fraud website that provides tips to homeowners in order to avoid being taken in by the fraud. Homeowners can also see whether a company is registered with the AG’s office and easily file online complaints. Visit http://ag.ca.gov/loanmod for all the details.