Posted by CF on 5/6/10 4:21pm
Msg #335270

Loan Modification Applications...

are notaries performing these services? I was under the impression that it was illegal to collect "up front fees" for this. My question is...even if you do not collect a check how would ever be able to prove that you did not collect the check.

I have been getting an increase of calls for this and have been declining them b/c of the liability.

Please PM with additional information.

Reply by RedBaron/IN on 5/6/10 4:58pm
Msg #335279

It is my understandering when when the services ask the borrower to pay fees with post dated checks up front they are not to be trused. A scam. A CA service that purpots to be a leagal firm still owes me money and I am not going to ask them to pay me. When they ask me to collect post dated checks up front and not to leave the person in trouble a copy of the docs they sign I turn them all down. They have stopped calling me. I checked with my nephew attorney in CA and he said it was difficult to check them out. Firms like this change address often.

Reply by MikeC/NY on 5/6/10 5:52pm
Msg #335292

"My question is...even if you do not collect a check how would ever be able to prove that you did not collect the check."

Logic 101 - you can't prove a negative. The best way to avoid trying to do that is to not put yourself in the situation in the first place

Reply by CF on 5/6/10 6:56pm
Msg #335309

Obviously, I did not make myself very clear. I should have prefaced it that the companies could collect before or after I have performed the service and my name/ stamp is on the line.

Reply by Doris_CO on 5/6/10 6:09pm
Msg #335295

I've seen an increase in Loan Modifications recently but I haven't received a call for an application in a long time. The final loan modifications I've done haven't required any money at the time of signing but I understand some companies will ask the borrower to pay the overdue payments when they sign the modification. Are you sure the calls you've gotten are for the application and not for the final modification?

Reply by MW/VA on 5/6/10 6:35pm
Msg #335305

Be extra careful with loan mod apps--some of these

companies are getting their upfront fees via a credit card. It is still a scam if there is a large upfront fee with the "promise" of obtaining a loan mod.

Reply by CF on 5/6/10 6:48pm
Msg #335307

MW/VA that is exactly what I was talking about

they can get the fees before I get there or after I leave and I would have no recourse to prove that I did not collect them. They could even say that I collected the credit card authorization form.

I was just wondering about this b/c someone is taking them in my area and I will not have my stamp/ name attached to any of it. I have received the confirmations for a couple of orders that had loan mod information on them. I called back and was told it was for a loan mod application and then declined the order. When the schedulers are calling they are not telling me it for a loan mod. That is the problem that I have.

Reply by Julie/MI on 5/6/10 8:41pm
Msg #335332

from Michigan Attorney General

The modifications I do are negotiated between the lender and mortgagor--no middle man no upfront fees. I'm simply acknowledging the finished product.

I want none of the headaches involved in the upfront modification paperwork. Nothing needs to get notarized on the preliminary stuff anyway so Jack Anybody could pick up the paperwork and check.



Cox Takes Aim at Advanced Fee "Foreclosure Rescue" Scams
Contact: John Sellek or Nick De Leeuw 517-373-8060




November 24, 2009

LANSING - Attorney General Mike Cox today 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.

Reply by CF on 5/7/10 7:57am
Msg #335384

Thanks Julie/MI I was tyring to find something on this

I must have been googling the wrong statement. All I was coming up with was companies looking to perform the mods.

I, too, only do the mods that the bank/lender has initiated with the borrowers and the paperwork is all done. Most of these come from BOA and IMO these are no different than a loan signing.

I know that I am making the right choice for my business by declining these orders!!! I have no want to find out, down the road, that I participated in anything illegal. We all know that none of these companies will have the notaries back in any legal proceedings. This is a risk that I am not willing to take.

Reply by MW/VA on 5/7/10 2:01pm
Msg #335445

If you do a search here, using the orange search button, you

will find lots of info on loan mod application scams.