Loan Modification Scams
Over the past year or so there has been a huge increase in the number of businesses offering loan modification services, a field that previously was not known by many. So because of this a large increase of complaints to the Federal Trade Commission (FTC), Attorney General (AG) and the Department of Real Estate (DRE) have also taken place. Resulting in many of these scam companies being sued and subsequently shut down.
Homeowners who are behind on their payments will often get contacted by a company who claims they offer special loan modification services. Beware of this, if your home is in the foreclosure stage it is posted in public records (like the newspaper) and that is probably how these companies found you.
Read more
Bill to Protect Homeowners Against Loan Modification Scams Clears Committee
SACRAMENTO – The Senate Judiciary Committee today passed a measure by Sen. Ron Calderon (D-Montebello) that will protect California borrowers who are struggling in today´s troubled housing market.
The bill, SB 94, authored by Sen. Calderon, will prevent a person or a business from charging an upfront fee to a borrower for helping negotiate a loan modification on that borrower´s behalf. Such services are free of charge from non-profit housing counselors. Read more
Banking Department Takes Action Against Mortgage Modification Companies
Companies ordered to stop unlicensed activity in Pennsylvania
HARRISBURG, Pa., April 22 /PRNewswire-USNewswire/ — The Department of Banking recently ordered four out-of-state mortgage modification companies to stop engaging in unlicensed activity in Pennsylvania.
The department issued cease and desist orders against Consumer Loan Modification of Arizona and U.S. Settlement Services of Florida on April 10 and Federal Loan Modification Law Center LLC of California on April 14. All three companies advertise on their Web sites to refinance mortgage loans in Pennsylvania when they are not licensed to do so. The companies must comply with the orders or file appeals by the end of April. Read more
2nd Chance Loan Modifications – Scam Shut Down By DRE
State Officials Issue Desist and Refrain Orders Against Loan Modification Firm Operating Unlawfully
SACRAMENTO, Calif.–(Business Wire)– After a joint investigation, the California Departments of Corporations (DOC) and Real Estate (DRE) issued separate Desist and Refrain Orders against 2nd Chance Negotiations, Inc., ordering the company to stop performing loan
modification services.
“While the current market has created some wonderful opportunities for those looking to buy, it has also fostered an environment ripe for abuse,” DRE Commissioner Jeff Davi said. “With so many folks struggling to stay in their homes, foreclosure rescue scams have risen dramatically. The department is aggressively pursuing individuals and companies trying to cash in on Californians in their time of need.” Read more
Do I need a lawyer to get a loan modification, and if so, why?
Loan modification companies now occupy countless blogs on the internet, almost every commercial break on the radio and now even television commercials. Some are lawyers, some are not. Both groups seem to be spouting the same message to the same people.
Is this “boom” caused out of a legitimate need, or is it perhaps overly opportunistic individuals?
First, to preface, I am a licensed California Attorney and Real Estate Broker. I have respect for both professions, though I realize, like any profession, there are bad seeds among us. As an additional disclosure, my practice is geared towards consumer representation, specifically with respect to mortgage issues. Read more
Loan Modification Q & A’s With Paul Molinaro
Manita Dadil :
How do you know if a company is legit?
Paul Molinaro Esq.
We fully understand the dire financial situation our clients face. EVERY one of our loan resolution or Bankruptcy clients is having money problems (or they would not need us). Thus, we have made our pricing affordable to people with very limited funds.
That said, we need to make sure we are paid, and we do not want to be just one more creditor of the many seeking to collect from our clients. We ask for full payment up front.
As to guarantees.
Lawyers do not guaranty the outcomes of their cases or matters. We are lawyers and zealously represent our clients. That is how we earn our fee… through the actual work we do. Read more
