Posted by Oz/Fl on 8/4/09 10:36pm
Msg #298715

21st Century

We saw this links today. FYI Only. No comments needed. Check it out for yourself.

http://loanworkout.org/2009/08/21st-century-legal-services-loan-mod-company-gone-wild/

http://loanworkout.org/2008/11/illegal-loan-modification-companies-welcome-to-the-hottest-business-since-subprime/

Reply by JanetK_CA on 8/5/09 12:24am
Msg #298720

Re: 21st Century - wow!

In the first link above, it said that they are using notaries (among others) as canvassers to refer people to them. It's one thing picking up the apps, but actually referring people??? I sure hope that was one item they got wrong!

Re: the second link... Just today I got one of those come-on letters. It's very official looking with a form number and the name Jpmorgan Chase Bank (with whom I have a HELOC - public record) in several places, but no other company name appears anywhere.

Here's what the main body of the letter said:

"Your first mortgage originally funded by Jpmorgan Chase [wrong] can be RESTRUCTURED.

This is not a refinance offer.

Based on public records and information obtained through Fannie Mae, you are in a severely declining market in terms of your home's value. [No longer true - starting to turn around.] We have reviewed your property information and have determined that you are eligible to modify the current terms of your existing mortgage, which would allow you to REDUCE your monthly payment by 30% - 60%. No equity is required. No minimum credit scores, Late payments are not a problem. No appraisal is needed and this is a guaranteed fixed rate loan." [FWIW, I have no missed or late payments.]

Because of all the discussion here, I thought I'd call them and appear to be interested to see what they would say. First thing I find out is that the person who answered the phone is not with Chase at all, but with a group called MBM Law Group. He said they could get a 4% fixed interest rate, but would pre-qualify someone before they are accepted because they are getting 20,000 files a month! To his credit, he did go through the usual list of what it would take to qualify [guess I should be glad I don't...] along with his hard sale pitch. But he also said that if someone met the other qualifications but was current with their payments, they "would be able to skip two months of payments" while going through the process. Which led right to the next question and, you guessed it: First payment is due when someone signs, 2nd due in 30 days, and the 3rd at the end. Average fee for the attorneys time is about $3000. But don't worry, because they have a 100% money back GUARANTEE!! Isn't that wonderful!

I can see how someone who is desperate would fall for something like this - especially if they aren't savvy about this industry. (BTW, in teeny tiny print at the very bottom that no one would read is a disclaimer denying affiliation with Chase and other stuff you'd expect.)

Reply by BobbiCT on 8/5/09 6:55am
Msg #298725

Tons of sketchy marketing mail ...

After I refinanced in the spring I received letters every other day from companies with "official looking implied from my lender" telling me I needed mortgage insurance, better deal on my homeowners, setting up automatic payments thru them, paying my loan off sooner thru them, etc.

All of them had the public information from my mortgage deed included within the caption or text of the letter. Even I had to read the first few Very Carefully and twice to determine the correspondence did not come from my lender. Good marketing campaign that will generate income from the unwary, not realizing it isn't their lender sponsoring this or that they don't need these products, particularly at the fees they will pay for something they can do themselves or don't need.

Reply by PAW on 8/5/09 7:58am
Msg #298729

What's really weird is ...

I too have received notices for loan modifications and mortgage insurance. The weird part is that I don't have a mortgage! So why in the world would I even consider either one of these scamming products?

Reply by MW/VA on 8/5/09 8:02am
Msg #298730

Re: What's really weird is ...

Probably for the same reason we get phishing emails. Somewhere a name gets picked up on mailing lists. I like the "Do Not Call" list & "No Junk Mail" lists. They really do work.

Reply by PAW on 8/5/09 8:04am
Msg #298731

More and more and more and more ...

Attorney General Bill McCollum Press Release
July 21, 2009
Media Contact: Sandi Copes (850) 245-0150

McCollum Files Lawsuit Against 4 South Florida Companies for Foreclosure Rescue Fraud

~ Company director allegedly ran boiler-room telemarketing operation using the President's voice to target victims ~

TALLAHASSEE, FL - Attorney General Bill McCollum today announced that his office has filed a lawsuit against four related South Florida companies that allegedly charge up-front fees for loan modification services to homeowners facing foreclosure. FHA All Day.Com and owner Jason Vitulano, as well as three other affiliated companies, purportedly collect up to $1 million in up-front fees on a monthly basis. The companies were allegedly soliciting hundreds of consumers nationwide via the internet and though telemarketing robo-calls which illegally used President Obama's voice.

An investigation conducted by members of the Attorney General's Economic Crimes Division, working as part of the Attorney General's Mortgage Fraud Task Force, indicated that Vitulano and his companies were charging up-front fees as high as $5,000 for foreclosure-related loan modification services. Vitulano also allegedly claimed to have an attorney on staff available to assist homeowners, but investigators believe no attorneys are currently working on any of the loan modification files. Consumers who complained to the Attorney General's Office also reported that the companies have not performed the promised services and that they were unable to contact the companies or get refunds. The Attorney General's Office has received over 300 complaints about Vitulano and his related companies.

The Attorney General's lawsuit seeks a permanent injunction prohibiting Defendants from charging up-front fees, restitution on behalf of all victimized consumers, civil penalties of $15,000 for each violation of the Foreclosure Fraud Prevention Act, and reimbursement for fees and costs related to the investigation. The companies are currently located in Deerfield Beach, Florida, but were previously located in Boca Raton and Delray Beach, Florida.

Consumers may file a complaint or fill out an affidavit about FHA All Day.Com, Safety Financial Services, Inc., Housing Assistance Law Center, Housing Assistance Now by visiting the Attorney General's website at http://www.myfloridalegal.com/mortgagefraud or by calling the fraud hotline at 1-866-966-7226. More information about that Attorney General's efforts in combating mortgage fraud, along with helpful information for homeowners in distress, is also available on the mortgage fraud website.

The Attorney General's Mortgage Fraud Task Force continues to review the practices of many companies providing foreclosure-related rescue services to ensure compliance with Florida law. The Foreclosure Rescue Fraud Prevention Act was one of the Attorney General's top priorities during the 2008 Legislative Session and has provided the Attorney General's Office, through the Mortgage Fraud Task Force, with better enforcement abilities on behalf of Florida's homeowners.

A copy of the lawsuit is available online at: http://myfloridalegal.com/webfiles.nsf/WF/MRAY-7U6KWB/$file/FHAComplaint.pdf

A copy of a consumer affidavit form and instructions is available online at: http://myfloridalegal.com/webfiles.nsf/WF/MRAY-7U6KVQ/$file/FHAAffidavit.pdf

Reply by MW/VA on 8/5/09 8:10am
Msg #298733

Re: More and more and more and more ...

Fortunately, as of July 1, we have a law in VA against companies charging these upfront fees.
I think we all know what's prompting the flurry of legal activity in this particular scenario.

Reply by 101livescan on 8/5/09 11:07am
Msg #298755

Hey, maybe a majority is beginning to catch on to these scam artists!

Reply by ikesgal on 8/5/09 1:34pm
Msg #298783

in this state they are checking them out and in arkansas they stopped them from doing business, they won't pay you if they dont get the information read the contract with them