Just this last month, the FTC had issued court injunctions on two predatory loan modification companies. These companies were parading around advertising their services in a manner very similar to the 2008 Paulson formed Hope Now coalition of mortgage servicers dedicated to foreclosure prevention.
The Federal Trade Commission convinced a U.S. district court to order two companies to stop advertising that they are part of a government-endorsed mortgage-assistance network. The complaints and restraining orders name Hope Now Modifications LLC, related entities and principals Nick Puglia and Salvatore Puglia as well as New Hope Property LLC and principals Brian Mammoccio and Donna Fisher.
I do my best to support our government. I receive press releases daily from consumer protection agencies and law enforcement and post these alerts on my blog in an effort to alert the American people. This blog and my forum at www.LoanSafe.org are the #1 loan modification websites on the Internet. So, naturally, we receive a lot of homeowners coming to our blogs for help and answers to their problems.
I feel a sense of duty to assist these struggling homeowners in any way I can. It has become a calling for me and a cause I have dedicated myself to.
The problem I have is that when these homeowners need help or have been scammed, there is little I can do but point them in the right direction. Whether it be a website, phone number, or agency. But what direction do you point scammed homeowners when they are losing their homes, have lost their last $3,000, have called the FTC, FBI, AG and still find no relief?
The companies, Hope Now Modification and New Hope Property appear to be now out of business, yet after they have scammed countless homeowners out of their saving and possible homes.
Where do these people turn to get help? Are they left in the foreclosure cold to suffer alone?
Here are some of the Hope Now scam stories from actual readers:
Debra says:
May 4, 2009 at 9:42 am
I sent them $1600 for a loan modification and then got the runaround as to who was handling my case. They did not keep in contact and are now anywhere to be found. I am now in foreclosure because of relying on them. I filed a complaint with the BBB and I still have not heard anything. I doubt I will get my money back and now I’ll probably loose my home. They make me sick to my stomach. I hope the gov’t cracks down on them. They deserve to do jail time.
Nothing but scam artists.
Understands says:
May 4, 2009 at 5:02 pm
I was asked to pay 3,500 upfront, for fees and so on that it had to be immediately, this person called our home at least 7 times a day insisting he would help, i found this to be very odd, not even the banks call that many times, so we thought if it sounds to good to be true, well then this is a scam, so we refused and never answer their calls again.This has happened to thousands of homeowners, because there is not a program in place to help us all, so we are being preyed upon, twice, yes twice, the first time by the brokers and predatory lenders and now by these salesman pretending to be modification specialist.
Government has turned a blind eye on us, we are in this alone, only by protesting and calling your government officials, the media, be persistent, we need to file a lawsuit then we shall, no one cares about our circumstances, no one!!!I read somewhere where on the news stating that we wanted handouts, let me make it very clear, that if i wanted a handout, i would be among the ones that live on welfare, and my house would be paid by section 8 program, i would get free food stamps and health care.
I on the other hand, just like all of you, do not want a handout, but a second chance to be able to pay my mortgage, which by the way….i pay $6,000 yearly in property taxes, 2,800 in homeowners insurance and $300 in flood insurance. I pay my own health insurance which is $260 a month, have been working my entire life, never had nothing giving to me for free by government, my kids are going to college on my expense, no freebees here, so these comments from senators and legislators are unfounded.
In FACT the only ones crying out for a HANDOUT was wall street, AIG and the banks, these are the ones that love the handouts, we are the abused working class, the tax payers, the ones that with pride refuse to give up, so i tell you all, do not give up, where there is a will there is a way, GOD looks after those in tribulations, he understands and knows are sacrifice. I will not give up will not abandon ship, if i have to go to Washington and protest i will on behalf of the 9 million going through our same situation, for those families living in TENT CITY. WE NEED TO UNITE, FOR ONE COMMON PURPOSE, THE RIGHT TO KEEP OUR HOMES, THE HOMES OF OUR CHILDREN!!!
Connie says:
May 4, 2009 at 5:34 pm
Same sad story can be repeated here to the tune of $3,00.00. Federal Trade Commission rep advised us to call Experian regarding the Identity Theft and to place a Fraud Alert on the account we used. This disgusting group of scam artists have all your personal information and copies of documents including SS#, bank accounts, credit cards and tax returns no telling what they are capable of next.
TONY & LAURA says:
May 5, 2009 at 9:09 am
YES WE TOO HAVE BEEN TAKEN FROM HOPE NOW MODIFICATION OF $1,600. AND IT’S BEEN SINCE JANUARY 2009.OUR REPRESENTATIVE WAS MARC LANGLEY. (SHAME ON YOU)WE WERE ABLE TO COMMUNICATE FOR AWHILE, THEN BAMM A SLAP TO THE BACK OF OUR HEADS.ALL OF A SUDDEN NO MARC LANGLEY CANT SEEM TO FIND DA GUY. WELL NOW WE WERE JUST DELIVERED A FORECLOSURE DOCUMENT ON OUR HOME FOR JUNE.VERY STRESSED OUT RIGHT NOW RACING FOR TIME WITH OUR MORTGAGE COMPANY AND THE OBAMA PLAN. GOOD LUCK TO EVERYONE ELSE OUT THERE THAT GOT RIPPED OFF.
Dezryl sneed says:
May 5, 2009 at 10:57 am
Yes i was scam out of 1448.91 i think they should be prosecuted to full extend of the law messing up people lifes.
Nelson says:
May 5, 2009 at 9:26 pm
I also was scammed. I lost $1800 and my house while I was TDY serving my country. Using Hope Now. What a way to take care of the people.
G. J. Cloutier says:
May 7, 2009 at 6:25 pm
It seems to me that there are enough people who have been scammed to file a class action suit to restore everyone’s money. Is there a way for us all to communicate nin real time on the phone or at least e- mail to start? I am willing to try . Any Suggestions?
Travis and Julie says:
May 8, 2009 at 2:04 pm
Yes we were part of the scam too they took us for $1500.00. We started ours back in January. We are only three weeks away from loosing our home before we fond out that this was just a scam. No one would reply to our phone calls. Just got silly automated phone messaging when we tryed to contact them. Out of all of us that got scammed hopefully the FTC will prevail for us.
Anna says:
May 12, 2009 at 3:34 pm
We were scammed out of $2242 + $1500 = $3742.00 for both houses we own so Hope Now could modify our loans — TOTALLY SCAMMED! I feel like a fool for trusting them and cannot get any response from them with their bogus email address, fax number and answering machine. What do I do now??? Has anyone tried to get funds back?
L weeks says:
May 12, 2009 at 8:28 pm
We were also a victim of Hope Now. I saw an article in a womans magazine about for closures- the recommended Hope Now- I called and spoke to Dereck Reid- What a nice guy- promised he would be able to help – I sent $ 1500. >From that day on I have not heard a word from the company. I since then wen to a private lawyer and paid again. I can only hope I did the right thing. I lost my job and was out of work for 6 months- and these people are heartless. I would like to go the the tv stations and see what they can do- or start a class action suit against them- I cant believe all the people they have hurt. We should start a petition and send it to Obama.
s.mathews says:
May 12, 2009 at 11:35 pm
I too was scammed from hope now almost 3k…I have filed complaint to BBB but it was closed due to hope now not responding. I also called FTC. I did get a number to a att office Spector,Gorden & Rose at (215)241-8888, but they said they were only there to take name, numbers and amounts paid…I got this number from a employee that was associated with hope now at some point but now in another dept. he as called me back but cant help due to ???? but he is the one that gave me this number.
{ 5 comments… read them below or add one }
It is unfortunate that you were a victim of Hope Now Modification. I work for a legitimate loan modification company, and I can confidently say that we can help those that have been scammed by this and other companies. In fact, one of my clients paid $3000 upfront to a person who claims to do loan modifications. Not only did this person not do the loan modification but has not answered any calls. We took his file and saved him $2000 a month off his mortgage. In addition we referred them to an attorney that will go after the company that have scammed them.
There are legitimate loan modification companies out there. We are different because we take the time and offer client’s options prior to taking any retainer fees. We want to make sure that we can help cleints. We also back our service, in writing, with a 100% money back guarantee. And we have no complaints filed on the Better Business Bureau.
I called the above number for Spector Gordon and Rose and was told they are the attorneys representing Hope Now Modifications. I gave my name and number but was told that the letigation could go on for years so not to expect the money back anytime soon or at all. This is disgusting what they’ve done to people who were already hurting. Does anyone know of a class action lawsuit or how to go about filing one.
I agree with the many of you regarding being scammed by false companies, but is there a web site that has a list of these scams and their names or law firms it seems this is the only way we as a people can protect ourselves. If we do not list their companies by name we are just allowing them to stay out there and contniue this vicious cycle.
Hello All,
Well I just found out yesterday that my program was a scam. I lost $1550 and now my checking is on hold because of fraud. I can’t even access any of the money I don’t have. The reason it’s on hold as this modification company was to take the final payment of $450 out on Friday. Back in December I contacted Hope Now and just didn’t feel comfortable with what I was being told. The company Mending Tree Solutions seemed to have all appropriate information and a great rating on the BBB. Boy was I wrong. Now I found out yesterday I am in Foreclosure and I am a single mother with two children that is losing our home. If anyone out there knows how I can save my home please responde to this posting. I am on limited time.
After 2 months of conversing with Hope Now Mitigations a.k.a. Hope 4 Solutions, and after a written 100% money back guarantee, I forked over $4,000+ !! And, you guessed it, they suddenly left their “offices” with all $$, files, and personal info.
Due to their inadequacies we would have lost our home if not for family members who rescued us from the thieves at Hope Now Mitigations. ” Class Action” Anyone?? Aaron Schulman and Betty Berry “begged” me not to interfere with their “progress” with my lender. VERY FOOLISHLY I did not until the foreclosure date on the docs. kept getting closer. “Don’t worry!” , etc. I was told by Aaron Schulman until almost too late. My own mortgager said, “It sure sounds like you were scammed!” How right!