I wish I had the time to do a bit more background, but it seems about a month - no more than two ago the Department of Justice handed out something like 150 Federal Indictments for Loan Modification practitioner who were basically perpetuating nothing more than fraud against the public.
I said it before, I said it then and I'll say it again now...Loan Modifications scare me!
I always thought they were ripe for fraud. When I consider how many loan officers and mortgage brokers were thrown under the bus for following the industry norm and getting a bit creative in processing loan applications I just KNEW there would be fallout with Loan Modifications.
When asked to make a referral to a loan modification company I have always suggested the homeowner make direct contact with the bank and try and make it work from there. As an alternative, I suggested they find an attorney based service, thinking at least there would be repercussions for fraudulent acts.
Well The California State Bar is investigating numerous attorneys for misconduct and have even released their names, in an unusual move. Typically anyone ‘under investigation' is kept confidential until the investigation is concluded and some sort of formal action takes place. Well, in favor of ‘public protection' the names of the attorneys have been made public.
▪ David Arase, Bar No. 233705, Arase Law Firm and National Housing Assistance
▪ Stephen Burns, Bar No. 113371, Legal Group Network
▪ Robert Buscho, Bar No. 122556, United Law Group
▪ Nicholas Chavarela, Bar No. 251632, Rodis Law Group and America's Law Group
▪ Steven Feldman, Bar No. 103676, Feldman Law Center
▪ Eric Johnson, Bar No. 224065, Avantgarde Group
▪ Paul Lucas, Bar No. 163076, Lucas Law Center
▪ Brandon Moreno, Bar No. 233750, U. S. Foreclosure
▪ Jeffrey Nemerofsky, Bar No. 213014, U.S. Advocacy Law Group and U.S. Financial Products
▪ Gregory Paiva, Bar No. 207218, Law Offices of Gregory Paiva
▪ Adrian Pomery, Bar No. 249664, U.S. Foreclosure
▪ Ronald Rodis, Bar No. 181873, Rodis Law Group and America's Law Group
▪ Mark Shoemaker, Bar No. 134828, Advocates for Fair Lending
▪ Marc Tow, Bar No. 78429, Marc Tow and Associates
▪ Michael Yellin, Bar No. 255050, A Fresh Start Loan Modification
▪ Sean Rutledge, Bar No. 255938, United Law Group
What amazes me is the names of their outfits - "US Advocacy Law Group", "America's Law Group", "Advocates for Fair Lending"...and the list goes on.
Another amazing statistic that I picked up is that about one fourth, or nearly 800 cases, of active investigation in the Office of Chief Trial Counsel (OTC) have to do with foreclosure complaints.
The OTC is also investigating non-attorney staff allegedly engaged in the unlawful practice of law by offering legal advise to prospective clients to entice them to sign up for their services. The OTC is considering referring these non-attorneys to law enforcement for criminal prosecution.
WHAT IS A CONSUMER TO DO?
The OTC offers some sound advice when performing due diligence to select an attorney for loan modification on what to avoid.
- Advertisements of the office do not expressly identify by name the attorney who is responsible for the business.
- Office staff will not readily identify by name the attorney responsible for oversight of the business.
- The attorney in charge of the office is too busy or not willing to meet personally with prospective clients.
- The firm advises a consumer to stop paying the existing mortgage.
- The business, through its advertisements or claims of its representatives, makes claims that sound too good to be true, such as claims of a 90 or 100 percent rate of success in obtaining loan modifications, or claims that a reduction in the mortgage principal is likely to be achieved.
- The business demands payment of a large fee, even before obtaining a prospective client's basic income and expense information, and information about the existing mortgage and present home value.
- The attorney responsible for the business is not licensed to practice law in the state where the consumer resides.
WHERE TO TURN...
Again, it goes against my core to recommend anyone for Loan Modification. However there are two agencies that have some sort of government ties (investigate for yourself) that seem to be as reputable a place to start as anywhere and that is either HUD Housing Counselors who can be reached at 800-569-4287 or Hope Now and their phone number is 888-995-HOPE (4673). One last option for California residents is to call the State Bar's Lawyer Referral Services Directory at 1-866-442-2529 (toll free in California).
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