It looks like American Modification Agency or AmeriMod is in the papers again and it isn’t for fixing loans and saving homes.
I wrote about the Long Island based loan modification firm back in January when they were sued in a $100 million class action:
Former sales agents say working for AMA was a nightmare. They received no training or salary and relied on commissions of 15% to 25%. Many of the clients they brought in never had their loans modified by the firm’s processors, with whom they were not allowed to speak. “We’ve had clients in for well over 150 days that aren’t done,” says an agent who was hired off a Craigslist ad and worked at AMA for six months.
Titus Foster says he brought in 12 customers during a stint at AMA last year, but only three had their mortgages modified. “They’re very willing to swipe people’s credit cards, but when it comes to actual work, nothing is done,” he says. Another former employee who worked at AMA last summer and fall says he brought in 15 customers, but none of the loans were modified. “It was, get it in, get it in, get it in,” he says. “Well, we got it in, but then they lost track of it.”
Former employees say the company grew too fast, too soon and describe a frenetic, almost circus-like atmosphere in the office. They recall President Sal Pane riding around the office on a Segway scooter drinking Red Bull and exhorting agents to bring in customers. “Each time we’d turn in a file, we’d go out on the floor and hit a gigantic brass gong hanging from the ceiling,” says one former employee. “Everybody cheered one another,” yeah, yeah, yeah.’
Read more about the American Modification Agency, AKA AmeriMod from the New York Daily News:
Victoria Vassell of the Bronx thought she had found the antidote to her foreclosure fears.
The 66-year-old home attendant signed up with the Long Island-based American Modification Agency, one of the new “foreclosure consultants” that sprang up after the housing bubble burst to “help” homeowners drowning in debt.
Last August, she paid the company $4,333 to reduce her monthly mortgage payments before her adjustable rate kicked in. She signed a waiver authorizing AMA to negotiate with her lender.
The company told her to stop paying her mortgage, which soon became delinquent. Then the bank threatened to foreclose on her two-family Bronx River home.
Eventually, she got her $3,200 monthly payments cut to $2,954 by herself, but she’s still mad.
“I had to borrow that money, and they take it,” she said, noting she’s still trying to get her money back, even though AMA promised her a refund.
“They give me all the runaround in the world,” she said.
Here is another article from the NY Daily News. They must be really investigating this firm and I applaud their efforts.
Homeowners desperately trying to keep their houses have a new scam to worry about: unscrupulous “foreclosure consultants.”
Blossom and Francis Joseph of the Bronx say they’re victims of one.
When Blossom lost her job and the couple fell behind on their mortgage, she saw a TV ad for a “foreclosure consultant” promising to lower their monthly payments.
She called the American Modification Agency of Long Island and paid them $3,190. American Modification then did nothing, they say, and the couple wound up in foreclosure anyway.
“If he knew he couldn’t do what he promised, he should have not taken the money,” Francis Joseph said, sitting in the brick, one-family home in Wakefield he still hopes to keep.
In December, the Josephs joined a class-action suit against American Modification that claims the company has collected fees from more than 7,000 homeowners nationwide – all potential victims.
For consultants like American Modification, business is booming, a result of the foreclosure crisis and homeowners with high-interest mortgages trying to keep their homes.