Green Credit Turns Red

MFI-Mod Squad had a great first week in business.  We exposed three mod companies in California that were in violation of California Department of Real Estate regulations.  One blatantly ripped off a Tampa couple (scroll down) which claimed to be affiliated with Green Credit Solutions out of Irvine.  Although Green Credit claims they were not, the evidence we have suggests they were.  Green Credit does acknowledge another company Sueno Financial was an affiliate and Sueno Financial shared an office with Lionstar Financial and Chris Campbell (the entity who ripped off my client in Tampa).  Sueno Financial isn’t even a licensed LLC or Corporation in California.  It appears Green Credit doesn’t do much in the way of due diligence when they sign affiliates.   My client and I both appeared on CNBC throughout the day talking about it on Tuesday.   I received a lot of really positive feedback from legitimate modification companies and attorneys for the piece and for the work I’m trying to do with MFI-Mod Squad especially the below article “Is that a California Wildfire? No it’s a Loan Mod Company!” 

The only negative response I received was from Green Credit Solutions.  I received a really asinine letter from their attorney demanding I take it down.  I would have posted it but my attorney in Boston (my Florida attorney was being a good dad) told me I better not.  It basically said I committed illegal acts by saying bad things about her client and they were going to sue me if I didn’t take it down.   This lazy attorney emails it to me instead of doing five minutes of internet research to find my address and send it to me certified mail but then again, this is the same attorney who probably thinks this is Riyadh, Saudi Arabia where they cut your tongue out for saying something offensive.  All the attorney did was made Green Credit look even more pathetic and ridiculous.   I would have expected better from an attorney whose office is on Wilshire Blvd. in Beverly Hills. 

I did send the attorney a response and that I can share with you.  The attorney’s name is left out intentionally. Here it is:

Do you honestly expect me to take your letter seriously? 

First, can you prove any of what I said was false?  Your client did offer to reimburse my client on multiple times while on a conference call with my client and then retracted it. Your client is not licensed with DRE.  Your client also tried to entice me with business to get this matter dropped.  So tell me, which one of those statements is false or can be proven false?  I also never said your client received funds from the transaction. Matter of fact, you should go back and read the article again, it says the opposite.  I don’t know what they taught you at the Lewis & Clarke Law School, but I can assure you my actions do not constitute “illegal” activity.  Being a graduate of law school, you know that just because I printed a negative opinion of your client based on my dealings with them that does not constitute defamation nor does it constitute libel and I can assure you what I wrote is legal and protected by the U.S. Constitution.  

If Green Credit does not like what people are saying about them and it appears I’m not the only one, they need to address it amongst themselves because only they can improve their poor public image.   Dr. Howard and Ms. Struthers were on CNBC multiple times today talking about this due to my connections at NBC Universal and other media outlets.  These connections are due to my reputation in this industry for being a fraud investigator. I have turned Dr. Howard’s report over to both the Florida Attorney General’s office and the California Department of Real Estate for further investigation.  I suggest your time is better spent helping your client become compliant with DRE then wasting your time, my time and your client’s money on futile and asinine threatening letters.  Oh, and if you’re still wondering, the article stays on both sites until a Palm Beach County or Federal Judge orders me to take it down. 

Stephen Dibert

President, MFI-Miami, LLC

President, MFI-Mod Squad, LLC

I’ll keep you posted if they have the testicular fortitude to follow through with their threat.   

CNBC Features MFI-Miami Owner

Steve Dibert, owner of MFI-Miami and MFI-Mod Squad, appeared on CNBC on Tuesday, January 27, 2009. Click here to view the TV segment featuring Steve.

Click here to view the TV segment featuring Steve.

Is That Smoke From A California Wildfire? No, It’s a Loan Mod Company.

I just finished doing an investigation for a client in Tampa, Florida, who got taken for $3500 by shady loan mod company in California.  You can see the report in the articles section and on CNBC tomorrow.    It will be included in a feature Diana Olick is doing on Loan Modification Companies.

The guy who conned them was Chris Campbell of Lionstar Financial who claimed to be an affiliate of Green Credit Solutions.  I had to do some digging after Brian LaRuffa and Curt Melone at Green Credit Solutions gave me a lot of double talk, offered me some not so subtle bribes and phoney promises of mortgage fraud files for MFI-Miami.   I dug through all the bull (which was pretty deep) and worked my way through all the smoke and mirrors when I was able to piece this all together. 

Chris Campbell owns an LLC in California named Lionstar Financial.  He worked out of the same office as Debra Sugden who claims to own Sueno Financial.  I know they worked at the same office because she signed for the certified letter I sent Chris Campbell and Lionstar.   Neither one of these companies is licensed through California DRE to do mods, mortgages or real estate in California.  According to Green Credit Solutions, Sueno is a broker affiliate.  Sueno Financial is not only not licensed through DRE, they are not even a registered business in California.  

This now leads us to Green Credit Solutions who charges $3495 upfront for their loss mitigation work.   There are two problems with this, first their fee agreements have not been approved by DRE which violates DRE guidelines and second, part of this fee according to their contract, is a retainer for an attorney which is a violation of California Business And Professions Code Section 6152.  It’s a big no-no for a third party to collect retainers or solicit clients for an attorney in California.   The excuse both Brian LaRuffa and Curt Melone gave was priceless, “We don’t have to be licensed by DRE because we are attorney backed so we answer to the state bar.” 

I then asked if they were attorneys and they said, “No”

I will give them credit, they did try really hard to convince me they were right.  Guess what, boys? If you are not attorneys you need to follow DRE guidelines.

When I first contacted Green Credit Solutions, Brian LaRuffa claimed Chris Campbell and Lionstar were affiliates, then a few days later, I get a call from Curt Melone pretending to want my services as a forensic mortgage auditor.  He claims he can bring me all kinds of business because he advertises on ML-Implode (a website for mortgage brokers) before he tells me who he is.  The conversation switches to my client and this whole sad affair when he tells me Chris Campbell was not an affiliate and that they were looking for him as well because he stole a stack of their client agreements and was passing them out all over California.   Both Brian LaRuffa and Curt Melone repeatedly promised to refund my client multiple times only to retract it either a few hours later or a few days later.  After every heated exchange with me he would say, “I hope we can get this settled soon so I can send you business!” 

After listening to their back pedalling and used car salesman tactics.  I finally told them I was going to chronicle this sad affair for the site because even if Chris Campbell did steal their client agreements they sure act like they did something wrong.  They naturally threatened to sue me.  Yeah, like threatening me with legal action has ever worked for anyone.  My advice, stay away from Lionstar Financial, Sueno Financial or Green Credit Solutions.

What is a Loan Modification and what questions should I ask the Modification company?

What is a loan modification? A loan modification is as the name suggests a modification of your current loan without going through the process of refinancing our home or property. The responsibility of a loan modification company is to act as a negotiator for you with your lender. Because a new loan is not being written, many states have not instituted or modified their mortgage and banking laws to regulate the loan modification industry. This means anyone can open a loan modification company, even those who have revoked mortgage and real estate licenses revoked or have multiple felony convictions.

Several states have begun to reign in loan modification companies by requiring licensing and background checks. Unfortunately, in the rest of the country, it’s still caveat emptor or “Buyer beware”.

Below is a list of questions you should ask when considering a loan modification company:

1. Have you or any of your employees ever been convicted of a felony?

You can follow this up with do you do criminal background checks on your employees? If they have employees with criminal records or they don’t do criminal background checks, look for another company.

2. Do you have a background in mortgage lending? If so what is it?

This is always a good question to ask because it shows the level of their competency and how they operate their business.

3. Can you provide references?

Don’t be afraid to ask to speak to real people. Some companies will post questionable testimonials on their site signed by “Homer S.”, “Monty B.”, “Ned F.” or “Moe S.” For all you know the owner or of one of his employees could have written these testimonials.

4. Is your processing done in house or is it contracted out?

This is a good question because it will tell you if the company is acting as a “middle man” and simply collecting a referral fee. Some services are legitimately contracted out such as the loan auditing or fraud investigating.

5. Do you have an attorney on staff?

This is a great question for two reasons. If they say, yes, then ask for their name and feel free to check them out with the state bar association. Having an in-house legal staff also gives the loan modification company legitimacy because it means they can handle any legal situations that may arise during the negotiations of the modification. If the loan modification uses outside attorneys, it’s a sign that the loan modification company could be acting as a soliciting agent for a law firm which is illegal in most states. Consumers also need to keep a watchful eye on attorneys who allow the loan modification company’s staff to use their letter head and fax cover sheets. In most states this considered unethical behavior by the attorney. If you suspect this do not hesitate to contact the state bar of where that attorney is a member.

6. Do I need to be late in order to make this work?

No. Although it may help expedite the process in certain cases, it is not mandatory

7. How long does this process take?

It can take anywhere between two weeks to six months depending on the lender and the complexity of the file.

8. If I can’t get a modification completed – what can be done?

There is a whole menu of resolutions available. There is litigation (in cases of deceptive practices), short-sale, short-payoff, deed-in-lieu, or forbearance.

9. Are there any guarantees?

Be careful of loan modification companies that offer or guarantee specific results because they don’t know what the final terms will be.

10. What are my costs and can you put this in writing?

There are two ways loan modification companies charge. They either charge a flat fee or a fee based on a sliding scale depending on the size of renegotiated payoff or by the size of your first payment. If they are unwilling to spell out the terms to you up front, keep shopping. Also, don’t be afraid to shop around. New loan modification companies are popping up everyday which means more competition and better pricing. A loan modification fee should not exceed $2500 and include a forensic mortgage audit.

11. Are you licensed in my state?

More and more states are requiring Loan Modification companies to be licensed in the state the property is located. California, Colorado, Florida, Maryland, Massachusetts and New Jersey, and New York all have very strict state specific requirements for modification companies. Most Loan Modification companies are NOT licensed outside of the state they are located in. The modification company will offer you a plethora of excuses on why they don’t need to be licensed in your state. If in doubt, call your state capital and find out. Only you can protect yourself by asking the right questions!