One such site, About California Loan Modification (dot) com –(sorry for not making it a link , don’t care to generate traffic for these guys) had a press release earlier on a free site pr-insider.com. The press release talks about a “Mr. A” and quotes him as complementing the work of said loan modification lawyer for taking a “gun to a gun fight” and saving him “well over $100,000”
Thursday, June 25, 2009
Fake Loan Modification Companies Out There And Fake Press Releases
From Loan Modification News site loan-deals.com
Wednesday, June 17, 2009
Skip A Mortgage Payment
Recently i read a bad article about not skipping payments and just calling your lender to get a loan modification. The problem here is lenders will flat out say that you aren't struggling because you haven't missed a payment - so why should they help you. No i am not the governor of New York, No i dont think loan modifications are a scam..
For Loan Modification News be sure to visit our sister site loan-deals.com
With ample talk of loan modifications, underwater mortgages and rampant home foreclosures -- and with over six-million jobs lost during the past 17 months, according to the U.S. Department of Labor, the temptation to skip a mortgage payment may never be higher.
Why? If you’re unemployed, or suffered a health scare that’s swallowed up your cash, taking a one-month break from your mortgage payment responsibilities might give you some breathing room.
And, true enough, skipping one mortgage payment won’t get you thrown out of your house. Some banks, like JP Morgan Chase (Stock Quote: JPM) and Bank of America (Stock Quote: BOA), are even making mortgage loan “freezes” part of their loan modification programs
For Loan Modification News be sure to visit our sister site loan-deals.com
Tuesday, June 16, 2009
Court hears warnings about proposed foreclosure aid regulations
Lawyers and residents warned the state Supreme Court today that banks and mortgage loan companies might try to circumvent a new state law designed to reduce the number of foreclosures in Nevada.
One said the companies will send “sitters” to mandatory mediation hearings who do not have any authority to offer loan modifications to home buyers facing foreclosure.
Another said it will be extremely difficult to find out who owns the loan on which a home buyer is in default and facing foreclosure.
Reno attorney Robert Hager said mortgage companies typically make loans on money they receive from investors.
With the billions of federal bailout dollars given to banks over the last year, Hager contended it might be the American taxpayers who own the loan on mortgages now in default.
“No one can tell me who owns my loan,” said Reno resident Lauren Kay, who said her home is in default. “Countrywide says it is only the servicer of the loan.”
Under tentative rules developed by a Supreme Court task force, a home buyer who receives a default notice after July 1 — the law's effective date — could request a hearing before a court-appointed mediator to see if the lender will agree to new loan arrangements.
Both home buyers and lenders would be required to submit loan modification proposals to the mediator.
Justices made little comment on the concerns raised today, but they could change the regulations based on what they heard.
The proposed regulations were designed to battle the foreclosure epidemic facing Nevada home buyers. They received their first public hearing today.
Another hearing will be held at noon Monday in court on the 17th floor of the Regional Justice Center in Las Vegas.
The rules are designed to put into effect Assembly Bill 149. The legislation, drawn up by Assembly Speaker Barbara Buckley, D-Las Vegas, passed overwhelmingly in the Legislature and was signed into law by Gov. Jim Gibbons.
Final rules will be adopted June 29 by the Supreme Court.
Hearings at which home buyers and lenders will meet with mediators and try to work out solutions will begin in August.
Chief Justice Jim Hardesty said he expects 1,200 to 1,500 home buyers will request the mediation hearings every month.
Buckley estimated the new law could save 17,700 homes that otherwise would have been lost to foreclosure.
For Loan Modification help
But she emphasized from the beginning that the law would help only those who still have the means to pay a mortgage.
Nevada leads the nation in its foreclosure rate. Last year, 77,000 people lost their homes to foreclosure in the state.
The proposed rules also would require home buyers to prepare financial statements, including stating exactly what they can afford to pay on a mortgage.
At the same time, lenders would have to release appraisals showing the current worth of the home on which they seek to foreclose and estimates of what the home would sell for in a “short sale.”
Short sales are the way many lenders now dispose of the glut of foreclosed homes. Prospective buyers submit bids for a property that generally are far short of the amount of the existing loan.
Lenders decide whether to accept those bids.
Justice Mark Gibbons today questioned why lenders do not offer “short financing” to existing home buyers facing foreclosure, seeing they already agree to short sales.
Gibbons said lenders should be aware that a home worth $300,000 two years ago might be worth only $150,000 today and be willing to make loan modifications based on the new value.
With the required information from the lender and the buyer, the mediator then can strive to see if the two sides can agree to loan changes that would keep the buyer in the home.
Under the law, however, lenders are not required to agree to new loan arrangements.
More than 350 lawyers, former judges and trained mediators already have applied to serve as mediators. They will be paid a maximum of $400, half of which will be paid by the home buyer and half by the lender.
One said the companies will send “sitters” to mandatory mediation hearings who do not have any authority to offer loan modifications to home buyers facing foreclosure.
Another said it will be extremely difficult to find out who owns the loan on which a home buyer is in default and facing foreclosure.
Reno attorney Robert Hager said mortgage companies typically make loans on money they receive from investors.
With the billions of federal bailout dollars given to banks over the last year, Hager contended it might be the American taxpayers who own the loan on mortgages now in default.
“No one can tell me who owns my loan,” said Reno resident Lauren Kay, who said her home is in default. “Countrywide says it is only the servicer of the loan.”
Under tentative rules developed by a Supreme Court task force, a home buyer who receives a default notice after July 1 — the law's effective date — could request a hearing before a court-appointed mediator to see if the lender will agree to new loan arrangements.
Both home buyers and lenders would be required to submit loan modification proposals to the mediator.
Justices made little comment on the concerns raised today, but they could change the regulations based on what they heard.
The proposed regulations were designed to battle the foreclosure epidemic facing Nevada home buyers. They received their first public hearing today.
Another hearing will be held at noon Monday in court on the 17th floor of the Regional Justice Center in Las Vegas.
The rules are designed to put into effect Assembly Bill 149. The legislation, drawn up by Assembly Speaker Barbara Buckley, D-Las Vegas, passed overwhelmingly in the Legislature and was signed into law by Gov. Jim Gibbons.
Final rules will be adopted June 29 by the Supreme Court.
Hearings at which home buyers and lenders will meet with mediators and try to work out solutions will begin in August.
Chief Justice Jim Hardesty said he expects 1,200 to 1,500 home buyers will request the mediation hearings every month.
Buckley estimated the new law could save 17,700 homes that otherwise would have been lost to foreclosure.
For Loan Modification help
But she emphasized from the beginning that the law would help only those who still have the means to pay a mortgage.
Nevada leads the nation in its foreclosure rate. Last year, 77,000 people lost their homes to foreclosure in the state.
The proposed rules also would require home buyers to prepare financial statements, including stating exactly what they can afford to pay on a mortgage.
At the same time, lenders would have to release appraisals showing the current worth of the home on which they seek to foreclose and estimates of what the home would sell for in a “short sale.”
Short sales are the way many lenders now dispose of the glut of foreclosed homes. Prospective buyers submit bids for a property that generally are far short of the amount of the existing loan.
Lenders decide whether to accept those bids.
Justice Mark Gibbons today questioned why lenders do not offer “short financing” to existing home buyers facing foreclosure, seeing they already agree to short sales.
Gibbons said lenders should be aware that a home worth $300,000 two years ago might be worth only $150,000 today and be willing to make loan modifications based on the new value.
With the required information from the lender and the buyer, the mediator then can strive to see if the two sides can agree to loan changes that would keep the buyer in the home.
Under the law, however, lenders are not required to agree to new loan arrangements.
More than 350 lawyers, former judges and trained mediators already have applied to serve as mediators. They will be paid a maximum of $400, half of which will be paid by the home buyer and half by the lender.
Monday, June 15, 2009
Home Loan Scams
LOS ANGELES - For months, Antonio Villagra worried that his Granada Hills home would be taken away. "I missed one payment," said Villagra, "and I had the money. But they told me for the modification I had to be behind one month to qualify."
Villagra had never been late on a payment, but wanted to modify his loan to get a better interest rate. Just after his wife passed away, he trusted a company that called him on the phone.
"The first thing they asked me was 'you have to bring in the check for two-thousand-two-hundred dollars to start it," he said. Villagra brought in the check, but the company, Prominent Financial Solutions, never got him a loan modification, and when employees stopped returning his calls, he looked for help.
Villagra went to Maritza Gutierrez and her staff at the County of Los Angeles Department of Consumer Affairs Real Estate Fraud and Information Program, where they got his money back, and got him the free help he needed.
"Obviously if the homeowner can't make a mortgage payment then they shouldn't," says Gutierrez. "But if they're telling them on purpose not to make a mortgage payment, then they're in violation of all these offers the government is trying to give homeowners."
Gutierrez says most of the homeowners who call her feel as if it's almost too late.
"Do they show up at your office?" asked news anchor Emmett Miller. "They show up at my office," answered Maritza, "and they're crying. And they're barely making it to eat. And nonetheless to pay 5-thousand dollars to a company that didn't do anything for them!"
Gutierrez says there is free help that her office can recommend. Investigator Gutierrez and her team got Antonio Villagra's money back, but we wondered if the company Prominent Financial Solutions was still doing business.
We went to Bellflower to find out, but their office was now a gym. But the owner for the gym, who used to work for Prominent Financial Solutions, told us we could get a loan modification two door down at the lawyer's office there. By phone, the attorney who runs the office, Wilo Nunez, said he had not heard of Prominent Financial Solutions, but several of his employees told us people who used to work for Prominent were now employed by attorney Nunez.
On hidden camera, one employee said: "Well we used to be Prominent but it's all been switched over to the law office just to make everything a little bit more certified as far as modifications go."
Also on hidden camera, an employee gave us the same advice as Prominent Financial had told Antonio Villagra: to fall behind in your mortgage payments to help you get a loan modification.
Informed about that statement, attorney Nunez said the employee may have said something unethical and could be fired for it, but he did not ask us who the employee was.
We also spoke to real estate attorney Seth Hicks of Greene, Fidler, Chaplan and Hicks LLP.
"We've had many horror stories," said Hicks. "In fact, I'd say one out of 4 calls that we get are from borrowers who have previously gone to loan modification companies and been completely unattended to and unable to meet loan modification."
Hicks says homeowners should be wary of unreputable loan modification companies and lawyers, but also says loan documents are so complicated, most consumers can't understand them well enough to represent themselves.
"An unrepresented borrower is like a sitting duck to a bank," says Hicks. His client "Terry" agrees. He says he has peace of mind after hiring Hicks to try to prevent a foreclosure on his house.
"You're talking about the number one investment in your life probably, your home," says Terry. "So it's worth it to seek the counsel of an attorney, and not try to do it on your own."
Villagra had never been late on a payment, but wanted to modify his loan to get a better interest rate. Just after his wife passed away, he trusted a company that called him on the phone.
"The first thing they asked me was 'you have to bring in the check for two-thousand-two-hundred dollars to start it," he said. Villagra brought in the check, but the company, Prominent Financial Solutions, never got him a loan modification, and when employees stopped returning his calls, he looked for help.
Villagra went to Maritza Gutierrez and her staff at the County of Los Angeles Department of Consumer Affairs Real Estate Fraud and Information Program, where they got his money back, and got him the free help he needed.
"Obviously if the homeowner can't make a mortgage payment then they shouldn't," says Gutierrez. "But if they're telling them on purpose not to make a mortgage payment, then they're in violation of all these offers the government is trying to give homeowners."
Gutierrez says most of the homeowners who call her feel as if it's almost too late.
"Do they show up at your office?" asked news anchor Emmett Miller. "They show up at my office," answered Maritza, "and they're crying. And they're barely making it to eat. And nonetheless to pay 5-thousand dollars to a company that didn't do anything for them!"
Gutierrez says there is free help that her office can recommend. Investigator Gutierrez and her team got Antonio Villagra's money back, but we wondered if the company Prominent Financial Solutions was still doing business.
We went to Bellflower to find out, but their office was now a gym. But the owner for the gym, who used to work for Prominent Financial Solutions, told us we could get a loan modification two door down at the lawyer's office there. By phone, the attorney who runs the office, Wilo Nunez, said he had not heard of Prominent Financial Solutions, but several of his employees told us people who used to work for Prominent were now employed by attorney Nunez.
On hidden camera, one employee said: "Well we used to be Prominent but it's all been switched over to the law office just to make everything a little bit more certified as far as modifications go."
Also on hidden camera, an employee gave us the same advice as Prominent Financial had told Antonio Villagra: to fall behind in your mortgage payments to help you get a loan modification.
Informed about that statement, attorney Nunez said the employee may have said something unethical and could be fired for it, but he did not ask us who the employee was.
We also spoke to real estate attorney Seth Hicks of Greene, Fidler, Chaplan and Hicks LLP.
"We've had many horror stories," said Hicks. "In fact, I'd say one out of 4 calls that we get are from borrowers who have previously gone to loan modification companies and been completely unattended to and unable to meet loan modification."
Hicks says homeowners should be wary of unreputable loan modification companies and lawyers, but also says loan documents are so complicated, most consumers can't understand them well enough to represent themselves.
"An unrepresented borrower is like a sitting duck to a bank," says Hicks. His client "Terry" agrees. He says he has peace of mind after hiring Hicks to try to prevent a foreclosure on his house.
"You're talking about the number one investment in your life probably, your home," says Terry. "So it's worth it to seek the counsel of an attorney, and not try to do it on your own."
Two Las Vegas men indicted in foreclosure rescue scam
Two Las Vegas men have been indicted on felony counts of theft from a person 60 years or older and theft under a foreclosure rescue scam, Attorney General Catherine Cortez Masto said today.
William Vargas and Michael Sinclair were indicted on one count of felony theft from a person 60 years or older and four felony counts of theft for allegedly operating a foreclosure rescue scam under the business name of Federal Housing Aid.
The indictment alleges that Vargas and Sinclair operated Federal Housing Aid since February 2007, offering loan modification services to assist people in avoiding foreclosure on their homes.
The pair allegedly charged people between $899 and $1,500 in upfront fees and offered a 100 percent money-back guarantee, claiming their company would refund the money if foreclosure could not be stopped.
The company is alleged to have solicited people in Nevada from a call center in the Philippines, the indictment said. After paying for services, Vargas and Sinclair failed to provide services people had paid for, and failed to refund payments as promised in their advertisements.
Michael Sinclair is believed to be in the Philippines.
Collecting fees before services are provided for loan modification is a violation of Nevada law, Nevada Revised Statute 645D.400, Masto said. The state alleges that Vargas and Sinclair failed to perform foreclosure rescue services and failed to refund money as promised.
The case was filed by prosecutors assigned to the attorney general's mortgage fraud task force, created by Masto in early 2008 to address mortgage fraud scams throughout the state.
A district court arraignment has been scheduled for William Vargas at 9 a.m. June 23 in Las Vegas District Court Dept. 17.
"Any individual who believes they can take advantage of the dire foreclosure market in the state of Nevada needs to know they will be identified and prosecuted," Masto said. "Victimizing individuals who are desperately seeking a way to keep their property is the height of greed and cruelty."
Las Vegas is leading the nation in foreclosures.
William Vargas and Michael Sinclair were indicted on one count of felony theft from a person 60 years or older and four felony counts of theft for allegedly operating a foreclosure rescue scam under the business name of Federal Housing Aid.
The indictment alleges that Vargas and Sinclair operated Federal Housing Aid since February 2007, offering loan modification services to assist people in avoiding foreclosure on their homes.
The pair allegedly charged people between $899 and $1,500 in upfront fees and offered a 100 percent money-back guarantee, claiming their company would refund the money if foreclosure could not be stopped.
The company is alleged to have solicited people in Nevada from a call center in the Philippines, the indictment said. After paying for services, Vargas and Sinclair failed to provide services people had paid for, and failed to refund payments as promised in their advertisements.
Michael Sinclair is believed to be in the Philippines.
Collecting fees before services are provided for loan modification is a violation of Nevada law, Nevada Revised Statute 645D.400, Masto said. The state alleges that Vargas and Sinclair failed to perform foreclosure rescue services and failed to refund money as promised.
The case was filed by prosecutors assigned to the attorney general's mortgage fraud task force, created by Masto in early 2008 to address mortgage fraud scams throughout the state.
A district court arraignment has been scheduled for William Vargas at 9 a.m. June 23 in Las Vegas District Court Dept. 17.
"Any individual who believes they can take advantage of the dire foreclosure market in the state of Nevada needs to know they will be identified and prosecuted," Masto said. "Victimizing individuals who are desperately seeking a way to keep their property is the height of greed and cruelty."
Las Vegas is leading the nation in foreclosures.
Wednesday, June 10, 2009
Feds Going After Loan Modification Companies
Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.
The FBI, IRS, Secret Service, Department of Housing and district attorneys in Fresno, Tulare and other counties are among those involved. Their assignment: investigate mortgage fraud and foreclosure-rescue scams connected to the real estate boom and the bust that followed.
The FBI has helped set up 65 similar groups to combat a nationwide epidemic of mortgage fraud blamed for $4 billion to $6 billion in losses, according to estimates.
While the FBI helps organize such task forces fairly regularly, usually they're set up in response to violent crimes. The fresh focus on mortgage fraud reflects how prevalent it has become, said Steve Dupre, an FBI spokesman in Sacramento.
Last year, the number of suspected mortgage-fraud cases in the United States topped 63,000. In only the first two months of 2009, the FBI received 28,873 reports of suspected mortgage fraud and had more than 2,000 cases under investigation.
Last year, 734 cases were opened nationwide. That compares with 295 in 2003.
The Valley task force efforts are in addition to cases that other agencies, such as Fresno police and Fresno County District Attorney's Office, are investigating.
The FBI, IRS, Secret Service, Department of Housing and district attorneys in Fresno, Tulare and other counties are among those involved. Their assignment: investigate mortgage fraud and foreclosure-rescue scams connected to the real estate boom and the bust that followed.
The FBI has helped set up 65 similar groups to combat a nationwide epidemic of mortgage fraud blamed for $4 billion to $6 billion in losses, according to estimates.
While the FBI helps organize such task forces fairly regularly, usually they're set up in response to violent crimes. The fresh focus on mortgage fraud reflects how prevalent it has become, said Steve Dupre, an FBI spokesman in Sacramento.
Last year, the number of suspected mortgage-fraud cases in the United States topped 63,000. In only the first two months of 2009, the FBI received 28,873 reports of suspected mortgage fraud and had more than 2,000 cases under investigation.
Last year, 734 cases were opened nationwide. That compares with 295 in 2003.
The Valley task force efforts are in addition to cases that other agencies, such as Fresno police and Fresno County District Attorney's Office, are investigating.
Loan Modification Application- Documents You Will Need
If you are struggling to pay your monthly mortgage payments each month you should strongly consider applying for a loan modification with your lender. A loan modification changes the terms of your loan to make your monthly payments more affordable. This can be accomplished through lowering the interest rate, extending the payment schedule on the loan, or forgiveness of part of the principle. A loan modification can help you get your finances back in order and help save you from losing your home in foreclosure.
To apply for a loan modification you will need to fill out a loan modification application. There are quite a few documents and pieces of information you will need to supply your lender. It is very important to be accurate and thorough in providing your lender with your financial information and to present a compelling case for why you are a good candidate for a loan modification. Here is a list of documents and items you will need to help you get started on your loan modification application.
Loan Modification Application
- Borrower Information Sheet. This is the part of your loan modification application that contains your basic personal information such as name, address and social security number.
- Hardship Letter. You need to write a brief, but compelling hardship letter stating the nature of your hardship and why you are not able to meet your monthly payments. Examples of acceptable hardships are loss or reduction of income, divorce or death in the family, medical bills, and job relocation.
- Financial Statement. This lists your income and assets and presents your case for why you cannot meet your current payments but at the same time shows how you will be able to meet revised payments under a loan modification agreement.
Supporting Documents
- A cover letter that explains why you are submitting these supporting documents. Also provide a list of the all documents.
- Copies of your federal income tax returns for the last two years
- Copies of your W-2 forms for the last two years
- Copies of your pay stubs for the last two months
- Copy of your latest mortgage statement
- Copy of your latest property tax statement, if your property taxes are not in escrow
- Supporting documents, such as hospital bills, death certificate or divorce papers.
- Your last two bank statements
- Copy of your homeowner's insurance policy
- Copies of any letters from credit counselors or financial advisors that demonstrates that you are attempting to correct your financial situation.
It is very important that you submit a compelling, accurate and thorough loan modification application. Use this checklist to gather your information and present a compelling case for your loan modification in your hardship letter and financial statement.
To apply for a loan modification you will need to fill out a loan modification application. There are quite a few documents and pieces of information you will need to supply your lender. It is very important to be accurate and thorough in providing your lender with your financial information and to present a compelling case for why you are a good candidate for a loan modification. Here is a list of documents and items you will need to help you get started on your loan modification application.
Loan Modification Application
- Borrower Information Sheet. This is the part of your loan modification application that contains your basic personal information such as name, address and social security number.
- Hardship Letter. You need to write a brief, but compelling hardship letter stating the nature of your hardship and why you are not able to meet your monthly payments. Examples of acceptable hardships are loss or reduction of income, divorce or death in the family, medical bills, and job relocation.
- Financial Statement. This lists your income and assets and presents your case for why you cannot meet your current payments but at the same time shows how you will be able to meet revised payments under a loan modification agreement.
Supporting Documents
- A cover letter that explains why you are submitting these supporting documents. Also provide a list of the all documents.
- Copies of your federal income tax returns for the last two years
- Copies of your W-2 forms for the last two years
- Copies of your pay stubs for the last two months
- Copy of your latest mortgage statement
- Copy of your latest property tax statement, if your property taxes are not in escrow
- Supporting documents, such as hospital bills, death certificate or divorce papers.
- Your last two bank statements
- Copy of your homeowner's insurance policy
- Copies of any letters from credit counselors or financial advisors that demonstrates that you are attempting to correct your financial situation.
It is very important that you submit a compelling, accurate and thorough loan modification application. Use this checklist to gather your information and present a compelling case for your loan modification in your hardship letter and financial statement.
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