Posted tagged ‘Shuster & Saben’

Three Great Videos About Countrywide & Loan Modification

July 30, 2009

In the first video a former Countrywide manager who was fired for in his words not selling bad loans that were doomed to fail speaks to the press. Countrywide was in my opinion rotten to the core. Unfortunately most of its employees cared only about closing the next deal and getting another commission. So many knew so few stood up.

This video announces the lawsuit filed by Florida Attorney General against Countrywide. I was pleased to read that while Countrywide is no-longer its ex- CEO will have to come to Florida to stand trial. To think Bank of America paid billions of dollars for a company that we was far, far, far less than nothing. Countrywide not only scammed its customers they scammed Bank of America who was in such a hurry to build mortgage market they apparently failed to due proper due diligence.

This is the best video of the bunch. Watch as Congresswoman Maxine Walters, of the U.S. House of Representatives calls Bank of America and other banks to obtain loan modification on behalf of her constituents only to be put on hold, hung up on and been given the run around for hours. Great job Nightline / ABC. In this video Rep. Maxine Walters does fantastic job advocating for her constituents and standing up to the big banks. With so many members of Congress ready to throw billions of dollars to every bank that made replaced common sense with greed and made bad loans at least there is one member of Congress that will take the big banks to task.

If you are a homeowner in foreclosure please see our lawfirm’s foreclosure blog.

http://floridaforeclosuredefense.blogspot.com

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Florida Attorney General Sues Loan Modification Company Targeting Hispanics

July 23, 2009

It has been a busy two weeks for Florida Attorney General, Bill McCollum, who has sued as many as five loan modification companies for accepting (a better word might be STEALING) up front loan modification fees from Florida Consumers. On July 17, 2009, the Florida Attorney General’s office announced the filing of a lawsuit in Orange County against Victor Lopez & Associates and its owners are in violation of Florida’s Foreclosure Rescue Fraud Prevention Act. The company’s office is located in Orlando.

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 Victor Lopez & Associates was charging up-front fees as high as $2,295 to homeowners seeking loan modification services. Additionally, consumer complaints allege that the company has not performed the promised services and that consumers are unable to contact the company or get refunds.

According to the lawsuit, Victor Lopez & Associates targeted the Hispanic community by advertising on Spanish radio and television and conducting the majority of sales transactions in Spanish, but only provided consumers with contracts in English. The Attorney General’s lawsuit seeks a permanent injunction prohibiting Victor Lopez & Associates 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 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.

Consumers may file a complaint or fill out an affidavit about Victor Lopez & Associates 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.

Copies of the lawsuit and the consumer affidavit are available online at:http://myfloridalegal.com/webfiles.nsf/WF/JFAO-7U2MD3/$file/lopezcomplaint.pdf and
http://myfloridalegal.com/webfiles.nsf/WF/JFAO-7U2MDM/$file/lopezaffidavit.pdf

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Welcome to The Truth About Loan Modification

July 17, 2009

Welcome to The Truth About Loan Modification. The purpose of this Blog is to help consumers lean the truth about loan modification companies and various lenders’ policies with respect to loan modification. I hope that this blog can be a form for readers to share their experiences good and bad with respect to their own attempts to obtain loan modification either on their own, through a loan modification company or though an attorney.

When it comes to information many consumers have a huge disadvantage. When faced with a loan modification offer the consumer cannot tell if the offer is good or bad because they have no standard of comparison. Our firm has seen countless homeowners who hired loan modification companies that did absolutely nothing other than take the homeowner’s money. In some cases when the lender was contacted by the homeowner the lender told the homeowner that it had never received a single call or letter from the loan modification company. Other loan modification companies have gone through considerable efforts and their clients, now in foreclosure, will come to us with pages of letters and call logs detailing the efforts of the loan modification company. Unfortunately diligent efforts often do not lead to a loan modification offer or lead to a proposal that offers little real savings.

One client of ours had two mortgages (a $250,000 first mortgage and a $75,000 second mortgage) on a condo that had fallen in value from $350,000 at the top of the market to $210,000. The homeowner had not paid their mortgage in six months. After a foreclosure action was filed by the lender, the loan modification company obtained an offer for modification that would roll the arrearages (from not paying for six months) into the loan and lower the interest rate from 7.95% to just under 7.5% on the first mortgage and lower the interest on the second mortgage on the second from slightly over 8% to slightly over 6%. I saw the loan modification proposal and told the homeowner “this is a joke.” Given that the first mortgage holder had filed a foreclosure action if that action went to completion (something our firm is fighting to stop), the first mortgage holder would obtain the property which is worth less than the balance on the first mortgage. If a deal is not reached and the foreclosure was completed the second mortgage holder would get NOTHING. Nonetheless the loan modification offer obtained by the loan modification company (something our client paid over $1,500.00 for) did not have one penny of principal (loan balance reduction) on either mortgage. If the property was put up for short sale it would be expected that the first mortgage holder would get almost all of the short sale proceeds and the second mortgage holder would get $1,000.00 to $2,500.00 because that is better than their alternative of getting nothing in a foreclosure.

If you have had had an experience good of bad with a loan modification company or loan modification lawyer, feel free to discuss it in the comments section of the blog or send an E-mail to truthaboutloanmodification@gmail.com. In future Blog posts I will post links to consumer complaints and state attorney general actions against loan modification companies that take homeowners’ money and never lift a finger to obtain loan modifications. I am hopeful that can build a database to compare modifications from the same lender. Armed with the knowledge of what a lender has done on other loans consumers can ask the bank for similar concessions and provide the lender of the details of similar modifications the lender has made in the past. Given that lenders often use multiple loan servicing companies it is normal for the left hand of a bank to have no idea what the right hand is doing.

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