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Here we go again...... 

Another so called "attorney based" loan modification company based out of Southern California, has been identified and it's inner workings revealed by local and Federal law enforcement agencies.   This particular operation was charging $1,000 up front fees but were helping only 1 out of 10 people who needed their assistance.  Their operation was so big, that they were spending $70,000 per week on radio and television ads to target their victims. 

Lawyers and law firms -- unlike Real Estate licensed professionals who are prohibited from taking up front fees -- are able to collect said fees;  to exploit this loop hole, these operations are hiring law students to create the illusion that they are law firms or affiliated with law firms.   

For those of you who have read my previous posts regarding this matter which is my personal crusade, my singular mantra: DON'T PAY UP-FRONT MONEY TO ANY LOAN MODIFICATION SPECIALISTS.  Legitimate organizations are out there which will help you free of charge or point you in that direction or you can do it yourself. 

Please tell everyone, so people in difficult situations will not be duped twice.

 

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

 

Steve Mun, e-PRO®, QSC®, CDPE®, CHS® 
www.stevemungroup.com

www.sanjoseshortsaleagent.com
650-605-3188

Cal Dre#: 01358433

 

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3 Comments on Law Enforcement finds Loan Modification "Boiler Room"

JUL
31
2009

Nice post Steve, I'm surprised this isn't happening more. I have long maintained that many attorney based loan mod/loss mit outfits are using said loophole to charge fees upfront under the guise of a "retainer fee", which of course, they don't have to refund in the event the loan mod is unsuccessful.

6:18pm • #1
AUG
04
2009
108,428 Points 3 Featured Posts Attended Rain Camp

Yes Johnny, I think the media should report more on these types of frauds so that the consumers are made aware that not all "attorney" based loan modification shops are on the up and up.

 

This is not to paint all attorney based loan modification operations as being fraudulent, as I'm sure many do really help out their clients and do deliver value.  But it is always those bad apples that stand out and give everyone a bad name. 

 

 

7:46pm • #2
SEP
20
2009

There are alot of scams out their that say they are Attorney Back Loan Mod Firms.  Our firm is very legitimate and the Attorney does charge a retainer after the prequalification process is done.  Our Attorneys are almost 100% successful and modifying over 500 loans a month.  There are even times that they have given money back, all of it to a homeowner as all mods are 100% guaranteed.  Sometimes, the financial situation of a homeowner changes drastically during the modification process and the modification can not be negotiated anymore and our Attorneys have no problem giving the money back.

I think there are alot of scams in any industry, look at Wall Street and the banks and what has just happened to our economy.  This was the biggest scam ever that the tax payers are now suffering through.

I think that in any service that homework needs to be done by the consumer and common sense, if it sounds to good to be true then it is.  As we pride ourselves in helping homeowners and helping them keep their homes if they can afford the new payment and if they can't at least we have consulted with them up front to know what their options are.

It does make me upset that adults in the industry are taking advantage of homeowners as it really ruins it for someone like me and how much I really help people.  You would think that as an adult that we all know better, but I guess if that was the case then Wall Street and the Banks would have done things differently.   All I know is I was raised differently and can put my head down on my pillow at night with a clear conscience. 

 

9:37pm • #3

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Steve Mun / San Jose Short Sale Agent

Campbell, CA

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