Posted by davidK/CA on 4/10/09 5:46pm
Msg #284391

New scam???

This company with a clever sounding name sends a 15 page contract and information document directly to borrower. One page has a blank acknowledgment clause. Borrower is told to provide copies of ID and two months bank statements and current mortgage statement and wait for Notary to arrive. Notary is told to be sure that borrower initials 15 all pages and to notarize borrower's signature on one page. So far so good. That's what we do, identify, confirm understanding and willingness to sign, obtain signature and acknowledge under color of our authority the signing of the document.

But what are the terms of the contract you ask and why could this be considered a scam? Briefly this company promises nothing more than to "audit" the provisions of the borrower's current loan to determine if the lender followed all the applicable laws and regulations.

Borrower pays an upfront fee of $1,400 by check or credit card to be sent back with documents. There are no guarantees that the company will discover anything that will allow the borrower to negate the existing loan and there will be no refund to borrower if the company performs what they solely determine to be the promised "audit".

I guess that gets the company around the CA Department of Real Estate's regulations regarding upfront fees for loan mods since they aren't promising a loan mod, just an "audit".

I guess there really is a sucker born every minute.

Reply by dickb/wi on 4/10/09 5:58pm
Msg #284393

any time they pay money up front there is a very high...


likelyhood they are being ripped off......

"One page has a blank acknowledgment clause.."

what is this ack attached to?....is it on a filled in document?....if not the signatures can't [at least in wi] be notarized as "a document with blank spaces is an incomplete document and notarization can't be completed.......

Reply by davidK/CA on 4/10/09 6:09pm
Msg #284395

Re: any time they pay money up front there is a very high...

The ACK wording is printed below the signature line ending the contract portion of the 15 pages. Perfectly appropriate and they even use current CA language so its quick and easy for the Notary to complete.

BTW, the company is not a law firm or a licensed real estate agent according to the CA DRE. Obviously they are attempting to stay far away from the CA mod regulations by not promising to obtain a modification, just an "audit" of the borrower's current mortgage provisions.

But in my mind it's a scam. A $1,400 scam.

Reply by dickb/wi on 4/10/09 6:12pm
Msg #284396

agreed........ n/m

Reply by Stamper_WI on 4/10/09 6:14pm
Msg #284397

Re: agreed........

Their sales speil must be something!

Reply by MW/VA on 4/11/09 10:01am
Msg #284463

Re: any time they pay money up front there is a very high...

What a scam, and unknowledgeable people are going to fall for it. Is there a place for you to report them?

Reply by L.G (Buc) Alboucq on 4/11/09 10:17am
Msg #284465

Re: any time they pay money up front there is a very high...

If you must use initials instead of the english language, could you please give us the code. I can usually figure it out but BTW leaves me cold.

Reply by Linda_H/FL on 4/11/09 10:28am
Msg #284466

BTW = By The Way...

And you can always google the acronym - you'll find its definition.

Search here for "acronyms" - some time ago several people posted websites and links where they can be found - think urban dictionary was one...

Reply by Les_CO on 4/11/09 10:00pm
Msg #284538

A facilitator is not the gizmo attached to the armature in the alternator on your car! You may want to check with your legal counsel about your potential liability when working with these kinds of clients. Forewarned is forearmed.