mandelman

GCS Shuts It’s Doors

After hearing official word of Green Credit Solutions’ collapse yesterday, I remembered Act 3 Scene 2 of Julius Caesar. In that part of Shakespeare’s famous play, Anthony declares: “I come to bury Caesar, not to praise him. The evil that men do lives after them. The good is oft interred with their bones…”

Like Caesar, Green Credit Solutions (GCS) had more successes than failures.  Their detractors and critics want to judge them by their failures.  GCS successfully completed almost 3500 loan modifications. Only 700 people complained to the California Department of Real Estate (DRE) and fewer than 150 people were found to have valid complaints.    They closed their doors because of the new laws that went into effect that regulate mod companies in California and felt that it was easier shut down then deal with the state.

 Most of the complaints DRE received were from homeowners who couldn’t have been helped with loan modifications. These homeowners were in stated income loans or no-doc loans because they require no proof of income or proof of assets. Not a single lender will modify this particular type of loan due to the high risk factor. As a result, there are high foreclosure rates in both California and Florida.

 Homeowners were forced into stated or no-doc loan programs in order to qualify for mortgages. Home values were highly inflated at the time when these loans were issued. Instead of renting for a few more years or buying a home that wasn’t as expensive, some people over-borrowed to buy a dream house.

 Our society has turned the American Dream into a nightmare.  Americans have become all five children from Charlie and the Chocolate Factory wrapped into one.  So, when something doesn’t go their way, they point a finger at someone else and cry: “I’m a victim!”  I constantly hear from loan mod company owners in Florida that homeowners are never satisfied. Recently, a mod company owner told me: “Homeowners, having become accustomed to not having to make a payment for six months or a year, now realize they have to start paying and refuse the modification.”

 If these homeowners don’t get what they think they’re entitled to, they complain on the Internet. Even though there are people with legitimate complaints against companies like Green Credit Solutions, there are complaints in every industry. That’s especially true of the lending industry and loan modification industry. 

 When I endorsed GCS in April, I received email messages from people accusing me of taking kickbacks and bribes, doing faulty research and not being a “good Consumer Advocate”. They were shocked that I would actually say something nice about a mod company. Let’s set the record straight.  Unlike unemployed former loan officer and blogger Krista Railey or former failed drug dealer, Moe Bedard who want people to think they’re the next Ralph Nader. I am not a Consumer Advocate and never professed to be one. GCS was taken off the 20 Worst Mod Company list because Larry Bracco of GCS, completed the list of tasks that I gave him including GCS refunding fees to satisfy clients. Those clients were very happy with what he did for them. 

I also asked a friend from the loan modification industry to visit GCS and give me his input. He traveled to the company’s offices. Columnist Martin Andelman did, too. Everyone who visited GCS gave me positive feedback about the company. Larry Bracco also showed copies of successful loan modifications to me and Martin Andelman, and he let us speak to dozens of GCS’ clients. 

There is one person dancing a jig on the grave of GCS, and that is Moe Bedard.  On his Website, loanworkout.org, Moe posted a comment in which he called GCS “clowns.” I think this is kind of odd since he operated a fraudulent loan modification company named Loan Safe Solutions for almost 18 months after DRE revoked his license for “moral turpitude.”  You can read all about here:

http://www.mfi-modsquad.com/would-you-hire-this-guy-to-do-your-loan-mod

How many lives did you ruin selling drugs, Moe?  How many people got screwed when you abandoned Loan Safe?  The difference between GCS and you, Moe, is GCS actually had a DRE license until May when they let it expire.     They didn’t try to sidestep California law to hide felony convictions like you did.