Posts tagged as:

mortgage scams

FBI Offers Homeowners Tips to Avoid Loan Modification Scams

by Moe Bedard

Consumer Alert: Don’t Let Foreclosure Rescue Schemes Sink You
Fees and Practices Trigger Complaints to FBI and State Investigators

In tough financial times it seems plenty of companies are claiming they can save Utah homeowners from foreclosure. There are a growing number of advertisements offering home loan modifications–or foreclosure rescue plans–for up-front fees. In Salt Lake City, [...]

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California DRE Looking Into 1,3000 Loan Modification Scams

by Moe Bedard

“These people were taking advantage of people at the end of their ropes,” said Davi, speaking at the O.C. Coastal Chapter of the Women’s Council of Realtors. “And they are so prevalent.”
Many scam artists see the issuance of a desist-and-refrain order as a cost of doing business, Davi said. Often, they’re able to reopen under [...]

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Government Wants School Children and Homeowners to Spot Scams

by Moe Bedard

And it is one of the first places targeted in the homeowner education campaign launched on Monday by government agencies, local leaders and housing advocates to stop scammers preying on desperate borrowers nationwide.

Officials do not know how many scams have been perpetrated among millions of American families who have lost their homes or face foreclosure. [...]

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California Bar targets attorneys Paul Lucas and Sean Rutledge

by Moe Bedard

Last month the California Bar announced a formal investigation of 16 licensed attorneys that are suspected of possible fraud. Yesterday, the State Bar of California filed petitions against two of those attorneys to officially put them out of business during the investigations.
The targets of the Barr are Paul Lucas of the Lucas Law Center and Sean [...]

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Company banned by NC AG operating under new name

by Moe Bedard

The investigations Green told her about are part of what the AG’s office calls “Operation Loan Lies,” a nationwide crackdown on loan modification and foreclosure relief companies that local and state officials call “scams.” The office has obtained a preliminary injunction against 21st Century Legal Services. They also got a temporary restraining order for a [...]

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Bail denied for California mortgage fraud suspect

by Moe Bedard

SACRAMENTO, California—A federal judge has denied bail for a 28-year-old Sacramento man who was returned to California after an international manhunt.
Garret Griffith Gililland III remains behind bars after pleading not guilty to 24 charges alleging he participated in a $100 million mortgage fraud ring.
Gililland had requested bail, even though authorities said he fled the country [...]

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Nevada enacts law to stop loan modification scams

by Moe Bedard

The State of Nevada has ruled that every single loan modification consultant in Nevada will have to stop operations on Thursday if they don’t meet new requirements.
This stems from a law passed in May, which created new regulations for loan modifiers. Before that, anyone could call himself or herself a modifier. That led to a [...]

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Foreclosure lawyers scrutinized for ethical violations

by Moe Bedard

The state group that disciplines lawyers is debating how to deal with reports of attorneys using errors and false statements to retake property in foreclosure cases.
Some of the most egregious Florida examples come from Sarasota County, where a study this summer that looked at the civil courts system found three of four foreclosure cases that [...]

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Scammers prey on homeowners looking for help

by Moe Bedard

Locally, a Pico Rivera business specializing in home modification loans drew the attention of sheriff’s fraud detectives when several clients showed up Sept.17 demanding answers.
The next day, deputies raided Your Dreams Come True Inc. on Slauson Avenue and later arrested Frank Candelaria, 47, for theft when he allegedly collected an advance fee in East Los [...]

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Why Authorities Haven’t Stopped the Foreclosure ‘Rescue’ Boom

by Moe Bedard

Four states have sued 21st Century, and at least three more have open investigations. Over 150 consumers from more than 30 states have filed complaints against 21st Century with the Better Business Bureau. No active firm has more complaints.
Yet the company forges on. Operating under a new name, Fidelity National Legal Services, it continues to [...]

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Cops raid California loan modification firm

by Moe Bedard

As I have stated many times before, if you are operating an illegal loan modifiction company, you will eventually get busted. If you are still in business, you are playing Russian Roulette. The HEAT that is on this industry is unbelievable and if you think that you are going to continue flying below the legal authorities radar, [...]

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Screwed homeowners, loan mod cons and death threats

by Moe Bedard

In my attempts to revive the American Dream for over two years a top my online soap box, I have to say that I have failed miserably. What I have discovered is that the ongoing nightmare of the American homeowner will continue on and that there are A LOT of rotten people in our society. Predators who [...]

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Suspect Loan Modification Firm Hit with Civil Charges, Accused of Scamming Consumers

by Moe Bedard

Following an ABC News investigation that exposed a suspect California loan modification company taking thousands of dollars from desperate homeowners while providing little to no help with their lenders, civil charges have been filed against the Nations Housing Modification Center (NHMC), the Federal Trade Commission announced today.
Former NHMC employees told ABC News the company was [...]

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FTC Announces New Enforcement Actions In Continuing Crackdown On Mortgage Relief Services Scams

by Moe Bedard

The Federal Trade Commission today announced two new law enforcement actions in a continuing crackdown on mortgage foreclosure rescue and loan modification scams, bringing to 22 the number of these cases the Commission has filed since the housing crisis began. The FTC also announced developments in similar pending mortgage-related actions.
“Today’s challenging economy presents an opportunity [...]

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Is the FBI getting ready to arrest the remaining loan mod cons?

by Moe Bedard

Living here in Southern California, I get to see all the same perps who sold subprime slime now selling loan modification snake oil. Some are doing it above board, but most of these companies are not and many of them are well known to be operating massive illegal operations across the whole United States.  As [...]

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New head of State Bar of California assails mortgage modification scammers

by Moe Bedard

The proliferation of complaints against lawyers who said they could help rescue clients threatened with foreclosure has hurt tens of thousands of people and confronted the bar with a mounting and costly disciplinary burden, said Howard Miller, a partner with the Los Angeles plaintiffs’ firm of Girardi & Keese.
“There are at least hundreds, and perhaps [...]

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Brown Arrests Three Mortgage Brokers for Stealing Nearly $1 Million from Borrowers

by Moe Bedard

From the Califonia AG / Los Angeles- Continuing his fight against mortgage scams, Attorney General Edmund G. Brown Jr. today announced that agents from his office have arrested Michael McConville, and two of his associates for their roles in a “criminal conspiracy” to steal nearly $1 million from borrowers seeking to refinance their homes.
Schedule note: [...]

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Foreclosure scams priority: Ohio attorney general discusses to-do list, restoring order

by Moe Bedard

Each year, the Ohio Attorney General’s Office lists the most frequent consumer complaints. Traditionally, those complaints are the same — automobile titles and home contractor problems. But as the economy plummeted, his office was faced with fresh complaints.
“Brand new problems this year that are at the top of our list all have to do with [...]

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Mod by Lawyers – Moe, you saved us a lot of money and grief

by Moe Bedard

I would like to thank Moe and all of you for your posts. I went to Mod By Lawyers (aka The Firm) last week and I have to say they were very convincing. – Leslie the Homeowner
I get chills sometimes when I read these comments and emails. The awesome feeling I get from helping someone [...]

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Feds, 10 States Join to Fight Mortgage Fraud

by Moe Bedard

10 states’ top prosecutors, 4 federal agencies form task force to combat mortgage fraud
Ten state attorneys general and four federal agencies are forming a task force to combat mortgage fraud.
Washington state Attorney General Rob McKenna issued a statement Monday saying targets of the enforcement effort include equity skimming, bogus foreclosure rescue, straw purchases and unethical [...]

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AG Warns Loan Modification Companies

by Moe Bedard

The attorney general sent out letters last week to 386 loan modification companies, ordering them to register with his office and post a $100,000 bond, or face criminal penalties and fines. He said none has posted a bond so far.
“If you pay these people, you’re not going to get it back. They’re not financially solvent,” [...]

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The loan modification business is officially dead

by Moe Bedard

Earlier this week California Attorney General, Gerry Brown placed a legal silver bullet in the hearts of hundreds of loan modification firms across the state. With one swift press release and a subsequent letter to the offending parties, Brown has put an end to California’s most recent gold rush.
This past Wednesday the Attorney General’s office issued a stern [...]

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I help people modifying their loans

by Moe Bedard

This comment was just left on my blog by a lady named Irene and I wanted to point out the claims made by this poster. Basically it is an advertisement for her services and not really a comment or anything of value.
ATTENTION HOMEOWNERS: DO NOT CALL IRENE OR THIS NUMBER BELOW!
This is only being posted to [...]

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Brown Orders Mortgage Foreclosure Consultants to Post $100,000 Bond or Face Prosecution

by Moe Bedard

California Attorney General Press Realease | Los Angeles – Threatening possible criminal and civil prosecution, Attorney General Edmund G. Brown Jr. today ordered 386 mortgage foreclosure consultants to post $100,000 bonds and register with his office.
He also ordered more than two dozen companies to justify suspicious loan modification claims made in “slick advertising,” online and [...]

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Borrower frustration over delays, lost paperwork and other impediments has resulted in a cottage industry of sham loan consultants

by Moe Bedard

Goddard, who has been working with attorneys general around the country over the past two years to encourage lenders to be more user-friendly about modifying loans, says the borrower frustration over delays, lost paperwork and other impediments has resulted in a cottage industry of sham loan consultants who promise help with refinancing. These criminals take [...]

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California AG Brown to join the DRE and Bar on Wednesday

by Moe Bedard

California Attorney General Edmund G. Brown has announced that he is joining forces with the Department of Real Estate and the State Bar in a new round of loan modification busts this Wednesday.
I can see the remaining loan mod brokers and sham law firms running into the darkness as I write this blog post. Unfortunately for 200 plus firms in Southern [...]

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Santoya Financial sued by the Arizona Attorney General

by Moe Bedard

A consumer-fraud lawsuit has been filed against the Phoenix-based loan-modification firm Santoya Financial.
The Arizona attorney general filed the suit Monday alleging Santoya is deceiving consumers with its advertising, Web site and news releases.
According to the suit, Santoya claims its loan-modification services are approved by the U.S. Department of Housing and Urban Development, which is not [...]

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Brown and FTC to Unveil Nationwide Crackdown on Loan Modification Scams Wednesday

by Moe Bedard

This is a long time coming.
It looks like California Attorney General Brown and the FTC will announce a nationwide crackdown on loan modification scams this Wednesday in Los Angeles.  The announcement will name massive loan modification scams operating in Los Angeles and Orange Counties.
The AG & FTC have dubbed the crackdown, “Operation Loan Lies.”
I am eagerly awaiting [...]

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Home Protection Agency aka THE ELITE FINANCIAL MANAGEMENT GROUP SCAM

by Moe Bedard

Submitted by a homeowner and member of the LoanSafe.org Forum. Please don’t take the bait like this guy did. Read my blogs, download my FREE e-book on the right of this website or join the forum with 16,000 other homeowners just like you!
Home Protection Agency aka THE ELITE FINANCIAL MANAGEMENT GROUP ake EFMG.
The service I [...]

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Century Legal Services Inc., Foreclosure Home Assistance LLC and Michael Brotherton Sued by the Ohio Attorney General

by Moe Bedard

Cordray Issues Statewide Foreclosure Rescue Scam Sweep
Seeks to shut down operations throughout Ohio
June 25, 2009

(COLUMBUS, Ohio) – Ohio Attorney General Richard Cordray today filed three lawsuits in a continuing effort to rid the state of foreclosure rescue scams operations. The lawsuits, filed against 21st Century Legal Services (Franklin County), Foreclosure Home Assistance, LLC (Cuyahoga County), [...]

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Desist and Refrain Orders and/or Accusations for Loan Modification Activities

by Moe Bedard

The following persons and entities have been served with a Desist and Refrain Order and/or Accusation by the Department of Real Estate resulting from a loan modification and/or foreclosure rescue transaction.
In some instances, the person or entity has been ordered to stop providing loan modification and/or foreclosure rescue services because the person or

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Court Grants Emergency Request to Halt Jacksonville Foreclosure Rescue Company’s Up-Front Fees

by Moe Bedard

TALLAHASSEE, FL—Attorney General Bill McCollum today announced that his office has obtained a court order temporarily prohibiting a Jacksonville company from charging up-front fees for foreclosure-related rescue services. According to the order issued by the Duval County Circuit Court, National Foreclosure Counseling Services Corp. is barred from charging homeowners any fee in advance for providing [...]

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Loan Modification Crackdowns and Their Effect on the Public

by Moe Bedard

By Moe Bedard
Following suit with Treasury Secretary Geithner’s warnings, more foreclosure consultants are being sued by Attorneys General throughout the United States. Today, Indiana Attorney General Zoeller indicated he was suing five foreclosure consultants in his state. Personally, I think it’s a good thing that fraudulent foreclosure consultants are being prosecuted. However, I am increasingly [...]

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“Bloodsuckers and Bottom Feeders”

by Moe Bedard

By Moe Bedard
Yet another Mortgage Modification Fraud alert was posted on CNBC this morning. Former Department of Housing and Urban Development consultant Howard Glaser warned “The bloodsuckers and bottom feeders are out.” More and more attention is appropriately being placed on mortgage scam artists by the mass media now and I think it’s a good [...]

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Florida Attorney General Calls for Cooperative Approach to State’s Mortgage Fraud Issues

by Moe Bedard

~ Situation likened to a “state of emergency” ~
TALLAHASSEE, FL – Attorney General Bill McCollum today announced that he has sent a letter to several state agencies and associations, including the Florida Department of Law Enforcement, the Office of Financial Regulation, the Department of Business and Professional Regulation and the Florida Bar, calling for a [...]

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Florida Bar Ethics Alert: Providing Legal Services to Distressed Homeowners

by Moe Bedard

The Florida Bar’s Ethics Hotline recently has received numerous calls from lawyers who have been contacted by non-lawyers seeking to set up an arrangement in which the lawyers are involved in loan modifications, short sales, and other foreclosure-related rescue services on behalf of distressed homeowners.
 These non-lawyers include mortgage brokers, financial management advisors, foreclosure “consultants” and [...]

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Loan Modification Scams Shut Down by the FTC: Hope Now Modifications & New Hope Property

by Moe Bedard

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 [...]

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California Loan Modification Firms Out of Control

by Moe Bedard

Not only are the authorities cracking down on fraudulent loan modification firms, but attorneys are beginning to file class action lawsuits against major violators. One loan modification company mentioned in the FOX report, The Firm, from Rancho Cucamonga, CA was recently forced to pay back advanced fees to a client for loan modification services. [...]

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An Answer to Unemployment, Mortgage Servicing and Foreclosure Scams

by Moe Bedard

Our country is facing many economic crises and they all seem to be reaching the boiling point simultaneously. From housing to unemployment, many Main Street Americans are suffering from foreclosures and layoffs by the millions.
I have a possible solution that may kill three Main Street viruses in one fell swoop (foreclosures, unemployment and foreclosure scams). This [...]

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Learn how to avoid mortgage and loan modification scams

by Nathan Fransen Esq.

Is it me or are “loan modification scam” companies becoming as prevalent as mortgage broker chop shops were a couple years ago? I don’t mean to be overly critical, and I understand many do good work, but I have heard stories of “former mortgage industry professionals” charging thousands of dollars to negotiate with the bank on behalf of the borrower.

At the risk of sounding like a protectionist, isn’t this something that should be done by a lawyer?

I have so many people come into my office who were victims of “predatory lending” and then victims of this next loan modification craze.

Take for instance just last month, I had a client tell me they paid $15k to a “modification company”. The company promised her they would reduce her balance and lower her interest rate to 5%. This truly sickens me.

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Predatory Loan Modifications: Ex-Mortgage and Real Estate Brokers Targeting Struggling Homeowners

by Moe Bedard

Homeowner Alert: They went from selling you a toxic home and loan and now they want to “rescue” you from foreclosure from those same homes and loans they sold you last year. Should you trust these so-called loan modification and short sale experts that are busting down your door to help you? Hopefully after you read [...]

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