Posted by Claudine Osborne on 4/23/09 8:15pm
Msg #286108

Interesting input from bo about loan mod company

Three months ago I brought a loan modification application from the company of the Century to a client. His uncle and aunt had both applied and he wanted to try.

This bo called me today he was very angry (not at me) he was told after paying $2,800.00 not refundable upfront fee that his modification was denied. Aunt and uncle have not heard on theirs yet. He is now 4 months behind on his mortgage and his lender wants to offer him a small loan to help him catch up. His lender will not modify his loan. He is going to try and persue legal actions to get his money back from the loan mod. company! I hope he can get his money back.

Reply by MW/VA on 4/23/09 8:28pm
Msg #286110

Thanks, Claudine. What a scam! I hope he doesn't end up losing his home.
As far as the company in question, I won't say I'm surprised.

Reply by Stamper_WI on 4/24/09 7:31am
Msg #286125

The contract with that company that I saw only promises to "request" in their behalf.
According to the WI Dept of Finance, They are not licensed to do what they are doing in WI. But they are anyway.

Reply by sue_pa on 4/24/09 7:47am
Msg #286127

And where is your signer's blame in this? Why does he want to take legal action? He knew/should have known it was nonrefundable. I'm guessing that's written in the contract he signed. Any reasonably intelligent person should realize there is no guarantee in this type situation, no matter who is working on your behalf. I'm also betting his contract stated this.

You did the paperwork 3 months ago. He's now 4 months behind in payments. Seems he's not blameless here.

I know nothing about these companies, I haven't done anything for any of them, haven't been requested to. I do know how desperate people can get in financial situations and basically everyone agrees others shouldn't take advantage but buyer beware still needs to come into play.

I see lawyers being put down on this site seemingly daily. A good LOCAL lawyer, paid to represent someone's interests, is, in my opinion, always going to be the best solution for any type legal situation/problem.

Reply by Les_CO on 4/24/09 10:22am
Msg #286141

Just my opinion...
Scams are not designed for ‘average’ or ‘reasonably’ intelligent people. They only work on those who are totally unaware, desperate, or greedy.
I would bet that ‘sue_pa’ has never used a “paycheck-loan’ or a ‘check cashing’ service. We have one of these outfits on every corner here in Denver. We all know they are a scam, perhaps legal, but a scam none the less. Get a loan and pay 100% interest? Send money to Mexico? Cash a check without ID? We all know for whom and why these companies operate. They are for people without ID’s, SS numbers, or bank accounts. IMO they all should be closed down tomorrow….But they have ton’s of money, and spend much of it lobbying (bribing) our lawmakers.
As for lawyers, most of us don’t work for, nor have some personal relations with a lawyer. Our only experience is what we see in the media. We hear that most of our lawmakers are lawyers, and look at what they are doing, and how honest, and trustworthy they are? Plus all the TV ads for ‘Personal Injury’ and “Class Action’ (formally called ambulance chasers) Attorneys, and wonder why our health care, and insurance costs are skyrocketing…but on this point I agree with Sue…there are many good lawyers out there, and if in doubt about legal matter get a referral from someone you trust, and call one.
My question to Claudine would be…did you represent yourself as an agent of the company? And did you point out to the ‘applicant’ that there were no assurances that he would get any loan at all, and that this kind of ‘service’ was available to him elsewhere for no cost?
No one likes to be cheated. All those that gave money to Bernie Madoff, were not stupid, or unaware….. and perhaps they should have known better, and also are not totally "blameless"? However they all are screaming now, and going after everyone that may have been involved. Knowingly or not. I know that for me as a professional (notary/signing agent/closer/realtor) I sure don’t want to have to tell some judge (that use to be a lawyer) that I was only hired as a messenger to pick up a check, and had no idea about the documents, their contents, or the meaning thereof.

Reply by davidK/CA on 4/24/09 10:55am
Msg #286148

Is there a REAL loan mod company?

From what I have seen and researched in CA the only real loan modification loan companies are the lenders themselves.

As usual the lawyers who are in the CA legislature and in close "contact" with and with the advise of their friendly campaign contributing lawyer friends have written a specific exemption in the law allowing lawyers, even those who are just front men for the scam artists to be able to collect upfront fees for the promise that someone will "attempt" to obtain a loan mod for the poor borrower.

Let see, under that set of rules when I bring my car into the brake shop because it's taking longer distances for my car to stop and I obviously need new brake pads installed, if the mechanic just had enough friends in the legislature then it's possible that the mechanic could collect an upfront fee from me, but would only be required to "attempt" to fix my brakes, he doesn't actually have to do anything more than just think about maybe pulling off a wheel.

As to those companies that don't even pretend to hire a lawyer as a front man the scam is so very obvious that the use of "flash paper" for the contract would be appropriate.

JMHO

Reply by Les_CO on 4/24/09 11:24am
Msg #286157

Re: Is there a REAL loan mod company?

I agree with everything in your post except the “flash paper” part. They really want to keep that contract because it ‘in writing, and signed by the applicant’, absolves everyone involved (except the notary/delivery-boy) from any kind responsibility or liability what so ever!