foreclosure rescue

ATTORNEY GENERAL ANNOUNCES GUILTY PLEA IN FORECLOSURE RESCUE SCAM OPERATED FROM THE PHILIPPINES

Las Vegas, NV— Nevada Attorney General Catherine Cortez Masto announced today that defendant Michael Sinclair has pled guilty to one (1) Category B felony count of Mortgage Fraud in violation of NRS 205.372(2), for fraudulently operating a foreclosure rescue scam in Las Vegas under the business name of Federal Housing Aid.

In addition, Sinclair must pay $60,000 in restitution to the victims of the scam. Sinclair was recently extradited from the Philippines, where he fled after learning of the indictment against him.

“This is one more example of how mortgage fraud scammers prey on Nevadans,” said Attorney General Masto. “We will continue to send the message that these scammers are unwelcome in our State. We will find you and extradite you, if necessary, to see that justice is served.”

Using a call center located in the Philippines, Sinclair and his business partner, William Vargas, operated Federal Housing Aid, a company that claimed to offer loan modification services to assist victims in avoiding foreclosure on their homes. The operation had been in business since February 2007. The two defendants charged the victims between $899 and $1500 in upfront fees and offered a 100% money back guaranty, claiming their company would refund the money if the foreclosure could not be stopped. After paying for services, the defendants failed to provide the services paid for and failed to provide refunds as promised in their advertisements.

On November 3, 2009, Vargas pled guilty to one (1) Count of Theft-Obtaining Money in Excess of $250 by Material Misrepresentation from a person over the age of 60, a Category B Felony in violation of NRS 205.0832(1)(c), NRS 205.0835(3) and NRS 193.167 and one (1) Count of Attempted Theft-Obtaining Money in Excess of $250 by a material misrepresentation, a Gross Misdemeanor in violation of NRS 205.0832(1)(c), NRS 205.0835(3) and NRS 193.330. As part of his guilty plea, Vargas is required to pay restitution to the victims in the amount of $21,000.

Sentencing is scheduled for June 3, 2010 before Judge Villani in District Court Department 17

The case was investigated and prosecuted by the Attorney General’s Mortgage Fraud Task Force, which was created by Attorney General Masto in early 2008 to address mortgage fraud scams throughout Nevada. The task force works closely with other State agencies, including the Mortgage Lending Division, to investigate and prosecute mortgage fraud crimes in Nevada.

Consumers who wish to report mortgage fraud are asked to contact the Attorney General’s Bureau of Consumer Protection in Las Vegas at 702.486.3194 to obtain a complaint form.

foreclosure rescue

87 Year Old Woman Gets Money For Her Stolen Home

By JAMES ELI SHIFFER, Minneapolis Star Tribune

An 87-year-old woman who was cheated out of her home of 50 years will receive $116,972 from the state, the largest pay-out in recent memory from a fund for victims of unscrupulous real estate professionals.

Telsche Paulson’s compensation from the Real Estate Education, Research and Recovery Fund was approved Wednesday by Hennepin County District Judge Susan Burke after Paulson’s lawyers and the state Department of Commerce reached an agreement on her claim.

The ruling is a milestone in Paulson’s long and frustrating legal journey, at a time of life that she expected to spend in comfortable retirement.

“I was happy that they decided to come through for me,” she said Thursday.

But the loss still hurts. She now lives with her son in a rented house in Farmington, far from the south Minneapolis duplex she lived in from 1958 to 2008. “This house isn’t like mine,” Paulson said. “It’s different.” (Read more)

foreclosure rescue

Cal Bar Encourages Parsa Clients To File For Restitution

Michael Finney, KGO-San Francisco – Thousands of distressed homeowners are looking for a way to get their money back after hiring a lawyer to save their homes.

 The families were left in a lurch when the lawyer suddenly resigned from the State Bar. But even before his resignation, investigators were raising questions about whether the attorney was doing more harm than good.

James Parsa advertised heavily on both television and radio up and down the state.

James Anderson signed a contract with Parsa and paid $3,500 up front to get a loan modification.

“What I got for my money was a big headache,” said Anderson.

Jeanine Barajas paid an advance fee of $5,000 for the same thing.

“I wouldn’t do it again if that’s what you mean,” she said.

The California State Bar told 7 On Your Side Parsa was one of 300 lawyers under investigation.

“Mr. Parsa was being investigated for his loan modification activities by the State Bar based on complaints we have received from clients. And as part of our investigation we learned that Mr. Parsa had a criminal conviction in 2001,” said Suzan Anderson from the California State Bar.

(Read More)

foreclosure rescue

Anatomy Of A Failed Foreclosure Program

Just how badly is President Obama’s $75 billion foreclosure program working out? Consider these newly-released numbers: Out of every 100 homeowners who came to JPMorgan Chase for help under the program, just 15 have or will likely receive a permanent payment reduction.

What happened to the other 85? For every 100 trial plans initiated from April through September 2009 under the Home Affordable Modification Program:

• 29 borrowers did not make all required payments under their trial plan;
• 20 borrowers did not submit all documents required for underwriting;
• 31 borrowers submitted all required documents but the documents did not meet HAMP underwriting standards, due to such things as missing signatures or nonstandard formats;
• 4 borrowers were or are likely to be rejected for undisclosed reasons;
• 1 borrower will not or is not likely to get their payment lowered.

The data comes from the prepared remarks bank officials plan to make Tuesday before the House Financial Services Committee. The testimony was posted Monday on the committee’s website. (Read more)

foreclosure rescue

Maryland DLLR Orders 5 Mod Companies To Shut Down Operations

Nicholas Sohr, The DailyRecord

State officials have ordered five companies to shut down illegal home loan modification schemes that targeted Maryland residents facing foreclosure, the Department of Labor, Licensing and Regulation announced Tuesday afternoon.

Homeowners paid thousands of dollars in upfront fees to companies that promised to modify their loans in order to avoid foreclosure, according to DLLR. Not only did the companies fail to deliver, but they stopped returning phone calls, misrepresented the loan modification process and ignored requests for refunds, the department alleged.

“Today’s actions are part of an ongoing effort to protect consumers from scams where desperate borrowers pay up-front fees to so-called consultants who promise assistance in getting a loan modification or otherwise avoiding foreclosure,” DLLR Secretary Alexander M. Sanchez said in a written statement.

The Federal Trade Commission and U.S. Department of Justice announced 118 similar cease and desist orders delivered by 26 federal and state agencies on Tuesday as part of the ongoing “Operation Stolen Hope.”

Companies served notices in Maryland were:

Equity Recovery Services, Towson;

U.S. Equity Solutions, Owings Mills;

GIAN Inc., Laurel;

Save My Home USA Co. Inc., Michigan;

Help Modify Now Inc., California.

None of the companies could be reached for comment Tuesday evening. At least one company Web site listed a phone number that was no longer accepting calls.

DLLR’s Office of the Commissioner of Financial Regulation is still looking into the companies’ dealings in Maryland to determine how many customers were duped and for how much, Assistant Commissioner for Enforcement Stephen Prozeralik said.

The cease and desist orders are usually enough to bring the companies to the bargaining table to discuss refunding consumers’ upfront fees, which typically amount to about $3,500, Prozeralik said. It is illegal for foreclosure consultants and credit services companies to charge such fees.

“We’ve been successful in the past with Maryland companies,” he said “They’ve sat done with us and worked something out. It is a little more difficult with these entities in California and Florida.”

RealtyTrac Inc., a California-based research firm, reported 6,661 foreclosures were filed in Maryland in October, a slight dip from the previous month, but a 124 percent increase over last year. The distressed housing market and economic recession have given rise to many schemes similar to those announced Tuesday.

“We have well over 120-odd cases under investigation,” Prozeralik said. “And then when you look at those cases, they’re multiplied by the number of consumers under them. It adds up to thousands of consumers who have been ripped off.”

Homeowners who believe they have victimized by such practices can call the Office of the Commissioner of Financial Regulation at 1- 888-784-0136, or the FTC at 1-877-FTC-HELP.

foreclosure rescue

Treasury To Motivate Banks To Modify By Using Carrot and Shame

By Peter S. Goodman

New York Times / November 29, 2009

NEW YORK – The Obama administration tomorrow plans to announce a campaign to pressure mortgage companies to reduce payments for many more troubled homeowners, as evidence mounts that a $75 billion taxpayer-financed effort aimed at stemming foreclosures is foundering.

“The banks are not doing a good enough job,’’ Michael S. Barr, Treasury’s assistant secretary for financial institutions, said in an interview. “Some of the firms ought to be embarrassed, and they will be.’’

Even as lenders have in recent months accelerated the pace at which they are reducing mortgage payments for borrowers, a vast majority of loans …

http://www.boston.com/news/nation/articles/2009/11/29/us_to_prod_mortgage_firms_on_lowering_loan_payments/

foreclosure rescue

Cox Takes Aim at Advanced Fee “Foreclosure Rescue” Scams

Michigan’s Attorney General Mike Cox, who is at the center of a controversy involving a dead stripper and former disgraced Detroit Mayor Kwame Kilpatrick, became the next wanna-be gubernatorial candidate to jump on the band wagon of going after mod companies for the free publicity.  His office sent out the below press release:

LANSING - Attorney General Mike Cox announced the filing of three criminal complaints and a total of 10 charges against illegal advanced fee “foreclosure rescue” operations accused of defrauding Michigan families of thousands of dollars.

 Global Financial Consulting Services of Dearborn Heights, Advanced Mediation Services of Midland and James Klein of Midland are accused of illegally charging homeowners facing foreclosure upfront fees for mortgage modification assistance.  The defendants claimed they would help homeowners by working with their lenders in an attempt to modify the borrower’s mortgage.  After paying the upfront fee, borrowers found that the companies could not secure a modification and were subsequently unable to get their money back.  

 ”These companies took advantage of Michigan families trying to hold onto the American dream,” said Cox. 

 Global Financial Consulting Services faces four criminal counts including two counts of charging upfront fees before services were rendered, a violation of the Credit Services Protection Act, and two counts of making misleading statements. 

 Advanced Mediation Services and James Klein each face two counts of charging upfront fees before services were rendered, a violation of the Credit Services Protection Act, and one count of making misleading statements.  Each of the charges carries a penalty of up to 90 days in jail and/or a fine of $1,000 in addition to the requirement that the companies make full restitution to each of their victims

 Cox urges any consumers who paid fees to Global Financial Consulting Services, Advanced Mediation, James Klein, or any other mortgage modification company for services that were not provided, to contact the Attorney General’s Consumer Protection Division at (877) 765-8388 or online at www.Michigan.gov/ag.   

 Cox reminds homeowners they can find foreclosure information on his website at www.Michigan.gov/avoidforeclosure.  The website includes contact information for government agencies and debt counselors, and also offers tips for those facing foreclosure, including:

·     Homeowners are never required to pay to speak with their lender or servicer.

·     Homeowners do not need to pay for outside assistance.  Free assistance with foreclosure issues can be found by calling the Michigan State Housing Development Authority at (866) 946-7432.

·     If you do hire outside assistance, never pay up front for help with negotiating your loan or working with your servicer.

 Attorney General Cox has made prosecuting mortgage fraud a priority for his office.  In 2008, Cox created a mortgage fraud unit, teaming with the Michigan State Police and other law enforcement agencies to tackle consumers’ complaints.  Cox’s office has charged 24 people or companies with a mortgage fraud-related offense in the last 12 months alone.  Cox’s office also conducted several mortgage foreclosure forums to help families stay in their homes during these difficult times.

 In addition to today’s charges, Cox announced that he has partnered with the Federal Trade Commission and delivered Notices of Intended Action (NIAs) to 13 out-of-state companies accused of illegally demanding upfront fees from Michigan consumers for loan modification services. 

 If the targeted companies fail to contact the Attorney General’s Office to create a plan to provide restitution to Michigan consumers, the Attorney General may file a civil suit against them in order to recover damages.

 The companies receiving NIA warnings from Cox today include 1 Global Financial, Inc., of Fort Lauderdale, FL; 21st Century Legal Services and Fidelity National Legal Service, of Rancho Cucamonga, CA; Best Interest Rate Mortgage, of Westmont, NJ; Echo Loans & Financial Solutions, of Foothill Ranch, CA; Elect Group LLC, of Oakland Park, FL; Federal Home Savers, of Commack, NY; Fresh Start Home Modification, of Woodbury Heights, NJ; Hope N Housing, of Norwalk, VA; IMC Financial, of Clearwater, FL; Lifeguard Financial, of Fort Lauderdale, FL; National Modification Corp., of Hauppauge, NY; North American Relief, LLC, of Costa Mesa, CA; and Peoples First Financial Inc., of San Diego, CA.

 A criminal charge is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.

foreclosure rescue

NY Bans Upfront Fees For Mods

ALBANY, N.Y. (AP) ― The state Legislature has passed a bill that will give New York state homeowners and renters more protection during foreclosures.

It will expand the mandatory 90-day pre-foreclosure notice to all types of home loans — not just subprime mortgages — so all homeowners are given information and time to take action.

Gov. David Paterson introduced the bill. It will allow the Banking Department and the Division of Housing and Community Renewal to find and help homeowners facing foreclosure.

It also creates new protections for renters living in foreclosed properties, allowing them to remain for the remainder of their lease or 90 days — whichever is longer.

The bill also protects homeowners by barring brokers who perform distressed property consulting services from accepting upfront fees.

foreclosure rescue

Loan Company Goes Dormant, Hundreds Could Lose Homes

A local loan-modification company is going out of business, potentially leaving hundreds of homeowners in jeopardy of losing their homes.

 By ANA GARCIA and FRED MAMOUN, NBC News Los Angeles

Updated 8:25 AM PST, Thu, Nov 19, 200

 Hundreds of homeowners who turned to an Orange County mortgage-modification company for help may be in jeopardy themselves and don’t know it. The company appears to have shut down.

 Company insiders say they have come forward to warn the public because they’re afraid people will lose their homes. 

 Greenleaf Legal Services in Mission Viejo may bill itself as “loan-modification experts,” but during a recent visit, the place was a ghost town.

 Some offices were empty, others had stacks of client files apparently waiting to be worked on, and telephone message…

 http://www.nbclosangeles.com/around-town/real-estate/Greenleaf-Legal-Services-Mission-Viejo-Loan-Modification-70424972.html

foreclosure rescue

Philly Gives Homeowners Hope

By PETER S. GOODMAN, New York Times

PHILADELPHIA — Christopher Hall stepped tentatively through the entranceway of City Hall Courtroom 676 and took his place among dozens of others confronting foreclosure purgatory. His hopes all but extinguished, he fully expected the morning to end with a final indignity: He would sign over the deed to his house — his grandfather’s two-story row house; the only house in which he had ever lived; the house where he had raised three children.

“This is devastating,” he said last month as he sat in the gallery awaiting his hearing. “This is my…

http://www.nytimes.com/2009/11/18/business/18philly.html?_r=1&pagewanted=all

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