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Operation Loan Lies Nabs Four – Loan Modification Help Center

admin — Mon, 04 Jul 2011 12:56:45 +0000

Federal Trade Commission (FTC) Chairman Jon Leibowitz was recently joined by California Attorney General Jerry Brown to announce the initiation of “Operation Loan Lies”, a coordinated national law enforcement effort to crack down on mortgage loan modification scams.

The operation has already filed 189 actions by 25 federal and state agencies against fraudulent loan shops that used deceptive marketing to push their shabby or non-existent foreclosure rescue and mortgage modification services. The actions involve homeowners across the country but were announced in Southern California, where the fraudulent companies were based. “These con artists see the high foreclosure rates as an opportunity to prey on people in distress,” FTC Chairman Jon Leibowitz said. “They promise to rescue homeowners in troubled financial waters, but after they take their money they throw them an anchor instead of a lifeline.”

In conjunction with the announcement the FTC gave details on four additional lawsuits which brings the total of mortgage foreclosure rescue and loan modification scam cases the Commission has brought since April to fourteen. In the four new lawsuits, defendants are charged with:

Making false claims that they would obtain a home loan modification Making claims that, in conjunction with the loan modification, they would stop foreclosure proceedings Failing to honor promises of refunds to homeowners if the proposed action was not successful

The defendants are charged with doing little or nothing to advance the loan modification process for their clients after receiving fees approximately equal to one month’s mortgage payment.

The specific charges against defendants are as follows:

U.S. Foreclosure Relief made false claims of fast turnarounds for approvals and years of experience with fictitious success rates for their loan modifications. Homeowners received neither. They are also charged with violating the FTC’s Do Not Call Rule due to their repeated contacts with homeowners on the National Do Not Call Registry. Pending a court date, assets of U.S. Foreclosure Relief were frozen. Lucas Law Center made false representations about their capability to obtain loan modifications. They also told homeowners to divert their mortgage payments toward paying Lucas’ fees, a violation of the law. The company did provide refunds to some of their clients but only after repeated complaints and requests for help from the Better Business Bureau, the California Attorney General, the State Bar of California, and/or local authorities. The court froze Lucas Law Center’s assets ahead of a court hearing Loss Mitigation Services assured homeowners that their loan modifications were virtually assured because they were a department of, or affiliated with, the consumer’s lender or mortgage servicer, a complete fabrication. Some homeowners lost their homes while waiting for modifications which would never happens. · Apply2Save made claims that they could get loan modifications done in thirty to ninety days when, in fact, they never made contact with the homeowners’ lenders. To stall for time, Apply2Save told their customers that paperwork was lost, often more than once.

Operation Loan Lies follows an April 6, 2009, announcement by FTC Chairman Leibowitz, Attorney General Eric Holder, Treasury Secretary Timothy Geithner, Housing and Urban Development Secretary Shaun Donovan, and Illinois Attorney General Lisa Madigan that there would be a crack-down on companies that were set up to defraud homeowners seeking home loan modifications.

The four companies provide valuable lessons in how homeowners can protect themselves from hiring a deceptive company that will not deliver on promises. In the case of U.S. Foreclosure Relief, one warning sign would any talk or intimation of affiliation with the U.S. government. U.S. Foreclosure Relief and Apply2Save both pitched themselves as being able to get approvals for home loan modifications faster than any of their competitors. Homeowners should be aware that the process of modification is two sided and that lenders are currently flooded with applications. Any promises of fast turnarounds should be met with great skepticism. Lucas Law Center advised customers to pay them instead of their lender, an obvious warning about their regard for legal and ethical standards. Finally, Loss Mitigation Services’ claims of affiliation with lenders and guarantees of loan modification approvals because of it were definite red flags. Finding the truth would have been as easy as making a direct call to the lender to verify the claims.

Avoiding the problems encountered by homeowners that were scammed by these firms is as simple as asking the right questions, doing some leg work, and realizing that if it sounds too good to be true, it probably is. Insist on working with a firm that has already done hundreds of loan modifications and can prove it. Visit the office and ask questions until you’re comfortable. A loan modification is a huge and important undertaking. Ensuring its chances of success by doing your homework will keep you out of trouble and give you a much better chance at staying in your home.

Feldman Law Center – What Do Higher Taxes Mean for Loan Modifications?

admin — Mon, 27 Jun 2011 13:57:01 +0000

In today’s unpredictable economy, you can’t take anything for granted. You don’t know if you’ll have a job tomorrow, if you will be asked to take an unpaid vacation, or if the interest rate on your home mortgage will spike. What if gas prices soar? Will a trip to the grocery store for your family’s weekly necessities cost more? So much of the territory that our country, and the world, is venturing into is unchartered.

While we don’t know what the future holds, we can try to plan appropriately for it. How can you prepare yourself for future expenses, save money, or spend less in your current situation? Many wise people are considering these questions now.

In addition to planning for the future, we can also take advantage of the opportunities that we are offered today. One opportunity being offered to many troubled homeowners is a home loan modification.

President Obama’s housing plan involves offering many people a chance to modify their home loans. If a distressed homeowner lives in his or her property, falls within the requirements for the amount they owe, and meets additional criteria, they could be eligible for the government plan. The FDIC even has a “mod in a box” home loan modification program that they are hoping to enlist lenders in taking part in. Even if you don’t take advantage of the government’s specific plans, and are a homeowner in a volatile financial situation, you can still opt to modify your home loan.

With the help of the Feldman Law Center, you can have a better chance at protecting your financial future. You do not know when home loan modifications will start to taper off, how long you will be at your current job, or how your taxes could be changed in the future. If you are concerned about your adjustable rate mortgage, or a potential bankruptcy or foreclosure, you need the help of experienced attorneys on your side.

The federal government as well as many state governments, are talking about increasing taxes. What is the potential fallout of that? Given the uncertainty we are facing now, it is hard to guess what higher taxes might result in. But perhaps homeowners would have to pay higher property taxes, or perhaps additional fees and penalties could be added to home loan modifications.

Debates on the efficacy of taxes, both low and high, are inevitable. Chances are good that tax rates and structures will soon change. Will this be good for your current situation? Will you pay more, or less? Will you be a part of the population paying for the benefit of others, or will you be the beneficiary? Obviously, this depends on many factors. It doesn’t seem prudent to generalize widely about this. Every situation will end up being different.

It might not be a good idea to wait for a loan modification. They are available now. Call the Feldman Law Center today. We specialize in loan modifications and are ready to assist you today.

Visit us at feldmanlawcenter.com or call 800-588-0425.

Feldman Law Center – Congress Modifies HOPE for Homeowners; CA Senate passes SB 94

admin — Mon, 11 Apr 2011 13:10:34 +0000

Feldman Law Center – News by Feldman Law Center — The U.S. Senate, as well as the California State Senate, are both at work to help homeowners avoid bankruptcy and foreclosure. The U.S. Senate and the California State Senate are also both at work to make lenders happy, balance budgets, and do any number of things that may or may not serve your best interests as a homeowner.

What do you need to know? Why should you care?

The Federal bill HOPE for Homeowners was passed in the summer of 2008 to help prevent foreclosures on the more than 400,000 homes that were facing it. In the first seven months that the law was enacted, the law helped exactly one family stay in their home. That’s right, one. Recently (May, 2009), Congress passed a bill that augments the original HOPE for Homeowners legislation to make it more effective.

In April 2009, in California, State Bill 94 cleared the Senate Judiciary Committee and awaits approval by the Senate Appropriations Committee. State Bill 94 was proposed by Senator Calderon (D-Montebello) and was designed to crackdown on some of the dishonest, disreputable, and predatory firms that are popping up hoping to profit from the misfortune of others. The main focus of the bill is to prevent loan modification firms from requiring payment up front for their services.

While it is possible to negotiate with the lender yourself or to hire a non-profit agencies, when it comes to staying in your home you should look for the most effective and efficient means possible. Hiring a loan modification attorney to help negotiate new terms on your loan can mean the difference between avoiding bankruptcy, foreclosure and a short sale and…not avoiding them. The important thing is that you are able to get out of your financial mess and stay in your home.

Truth is, thousands of loan modifications are successfully negotiated by private sector firms in California and throughout the country. This is important to remember when considering your options. It would be foolish to trust someone who promises something they can’t deliver. It would also be foolish to ignore help from someone who is willing and able to assist. If you are drowning, and someone that has been standing on the bank pulling people out offers you a hand, shouldn’t you take it?

We will continue to hear grumbling about the economy, and what “got us into this mess.” We will continue to hear proposed legislation to regulate, modify and change rules and regulations in the various industries directly linked to this financial crisis. And we will continue to hear pleas from senators, congressmen, banks, loan modification “experts,” and any number of people whose direct interests are involved.

Think about what is best for you. Are you prepared to negotiate a loan modification directly with your lender? The Feldman Law Center is trustworthy, reputable, and ready to help you stay in your home. We specialize in loan modifications and have attorneys on staff who know the business. Call the Feldman Law Center today.

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

Resources:

Feldman Law Center: Profile – Business Exchange

Feldman Law Center – Loan Modification Video