Loan Deals: News

An Irvine attorney and his business partner have been arrested for defrauding over 400 victims in a $1.25 million loan modification scam that targeted distressed homeowners, the Orange County District Attorney’s Office said Friday.

Prosecutors said inactive attorney Christopher Lee Diener, 42, and his partners Stefano Joseph Marrero, 40, and Terrence Green Sr., 43, are each charged with one felony count of conspiracy to commit grand theft and 97 felony counts of grand theft by false pretense.

They also face sentencing enhancements for white collar crime and excessive taking, and, if convicted, could receive a sentence ranging from probation up to 70 years in state prison.

Diener and Green were arrested this morning and are being held on $1.5 million bail each. They must prove the money is from a legal and legitimate source before posting bond, and prosecutors said the two are expected to be arraigned tomorrow. A $1.5 million warrant has been issued for Marrero’s arrest.

Beginning in March 2008, the defendants allegedly defrauded hundreds of victims by offering loan modification services in exchange for advance payment.

Marrero and Green were business partners and Diener acted as attorney for their businesses. The three are neighbors in Ladera Ranch and are accused of operating loan modification businesses under the names Home Relief Services, LLC, US Loan Mod Processing, HRS Communications, The Diener Law Firm, and Diener Law Group.

Chris Loan Modification, Scams

People seeking loan modifications beware — most of the companies that offer them are not licensed, and some are set up just to steal cash.

Over a six-month investigation, 5 Investigates found dozens of people victimized by scam loan modification companies.

Fernando Sanchez was one of the victims. He was barely making ends meet when he heard about an opportunity to reduce his mortgage, from $2,300 per month to $900 per month.

“They told me to go to this meeting to see what it was about … and these people allegedly have an attorney and a translator,” he said.

Sanchez paid $1,000 to sit in a garage in a residential neighborhood set up with tables and chairs for the meeting. The attorney charged $6,000 for the loan modification.

To read the full article go here to kpho’s website.

Chris Mortgage

27 existing centers have served 60,000 families already

NEW YORK - Chase today announced that it is opening 24 more Chase Homeownership Centers in the next four months to provide face-to-face help to thousands more homeowners who are struggling with their mortgage payments. That will bring the total to 51 Chase Homeownership Centers in 14 states and Washington D.C.

“Our first 27 centers have proven to very effective in reaching families who are facing financial hardship and have fallen behind on their mortgages. So, we are adding more locations to help more homeowners with their loans, including working with them to complete and assemble all the documents we need to provide permanent payment relief” said Charlie Scharf, head of Retail Financial Services at Chase, the consumer business of JPMorgan Chase.

Chase is the only major mortgage servicer that has opened a large network of face-to-face centers to help struggling homeowners understand their options and help pull together paperwork for loan modifications. Borrowers can schedule appointments or simply walk in six days a week. In 11 months, Chase Homeownership Centers have served more than 60,000 borrowers.

Using languages including Spanish and Vietnamese, center staffers also reach out to homeowners through hundreds of community foreclosure-prevention fairs and through non-profit counselors. In addition, Chase has mailed 538,000 letters to struggling borrowers living near a center.

Responding to the needs of homeowners who have been hit hard by the housing and economic downturns, Chase will have centers in six new markets:

* Cleveland, 1500 West 3rd St.
* Dallas, 12750 Merit Dr.
* Houston, 11550 Fuqua St.
* Boca Raton, Fla.
* Ft. Lauderdale, Fla.
* Seattle, Wash.

In addition, Chase will open 18 Chase Homeownership Centers to supplement existing centers. A total of seven new Chase Homeownership Centers will be in California, bringing the total number of Chase centers in California to 16; the six additional Florida centers will make the total 11.

In 2009, Chase approved more than 568,000 new trial modifications under the U.S. Making Home Affordable Program, its own modification program and Fannie Mae, Freddie Mac, VA and FHA programs.

For information, borrowers struggling with Chase, WaMu or EMC-serviced loans can go to www.chase.com/myhome or call (866) 550-5705.

Chase services about 10.3 million loans, including about 8 million loans for investors.

About Chase
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), which operates more than 5,100 branches and 15,000 ATMs nationally under the Chase brand. Chase has 146 million credit cards issued and serves consumers and small businesses through bank branches, ATMs and mortgage offices as well as through relationships with auto dealerships and schools and universities. More information about Chase is available at www.chase.com.

Chris Loan Modification, Mortgage

President Obama’s new Making Home Affordable Plan makes getting a Wells Fargo loan modification easier for many struggling homeowners.  The federal government loan program offers financial incentives to lenders like Wells Fargo, to offer loan modifications to their borrowers.  In fact, Wells Fargo has recently increased their home retention staff to meet the demands of an increased need for loan modifications. A loan modification results in lower monthly payments, making it easier for homeowners suffering a financial hardship to meet their monthly payments and save their homes from foreclosure.

What if you have already applied or been turned down for a Wells Fargo loan modification?  Even if you have previously applied, you can still apply under the federal Making Home Affordable Plan.  You just need to become familiar with the eligibility requirements and make sure to fill out a complete and accurate loan application package.

A Wells Fargo loan modification may involve a reduction in the interest rate you are paying on your loan, having your loan term extended for up to 40 years, or having part of your principal balance deferred.  These loan modification options may be available to you and result in a new loan payment that is 31% of your monthly gross income.    Under the Obama Making Home Affordable Plan, you do not need to negotiate a loan modification agreement.  Everyone is given the same options, as long as you qualify.  However, you still do need to submit an accurate and complete loan modification application.

There are also representatives available to help you through the Housing and Urban Development Department (HUD).  The counselors will help explain the program but do not help you with completing your Wells Fargo loan modification application.  So you will still need to take the time to become familiar with Wells Fargo’s loan modification application requirements and the loan modification process in general to ensure that your application is filled out properly to give yourself the best chance of having Wells Fargo approve your loan modification request.

If you are interested in applying for a Wells Fargo loan modification, you will need to be prepared to write an effective hardship letter, stating clearly and concisely what your financial hardship is that is making it difficult to make your current monthly mortgage payments.  You will also need to be able to provide proof of your income and expenses as well as fill out all the forms in the Wells Fargo loan modification application in an accurate and complete manner.  Taking time to learn about the loan modification process and submitting an accurate, complete and persuasive loan modification application will greatly increase your chances of your Wells Fargo loan modification being approved.

Chris Loan Modification, Mortgage

According to The S.C. Department of Consumer Affairs, Hope Now Modifications, a New Jersey-based company is among the businesses accused of ripping off state residents.

The company is being blamed for misleading consumers about their ability to provide mortgage relief. Consumer affairs says the company is also being investigated for failing to issue refunds.

The agency has received complaints on dozens of companies that fail to comply with the state’s strict licensing guidelines.

 

Read the full article here: http://www.wltx.com/news/story.aspx?storyid=78973&catid=299

Chris Loan Modification, Scams

The Oregon Attorney General’s Mortgage Fraud Task Force this week indicted a Salem mortgage broker on charges of mortgage fraud, aggravated theft, forgery and identity theft.

Julian James Ruiz III, 38, is the manager and owner of American Home Modifications, a Salem-based loan modification company. He faces 17 counts of first degree aggravated theft, mortgage fraud, identity theft, aggravated identity theft, forgery in the first degree and criminal possession of a forged instrument in the first degree.

“We intend to prosecute mortgage fraud aggressively. If you cheat vulnerable Oregonians facing foreclosure, we will hold you accountable,” said Attorney General John Kroger in his announcement of the indictment.

Kroger said this was the first indictment by his office’s task force.

He added that Ruiz will not be able to complete the loan projects with his customers, who are advised to talk with a HUD-approved counselor to avoid pending foreclosure or defaults. Consumers can call 800-SAFENET or 800-723-3638 to find a counselor, including Spanish-speaking counselors, at: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=OR.

Chris Loan Modification, Scams Loan Modification

I am not a large fan of Loan Modification companies. Being a resident of Orange County, California, having worked for many mortgage companies, and loan modification companies and seeing firsthand what is happening and , pardon my language , but knowing what pieces of shit actually run these places makes me sick to my stomach.

But what about the places the pieces of shit actually help?

There are countless stories about Obama’s plan failing, and in case you have been living under a rock then let me update you. Obama’s plan has failed miserably. Recently second-most powerful Democrat in the Senate called the Obama administration’s mortgage modification program a “waste of time”. Others are voicing their opinion at the banks for their un-willingness to help, and last but not least the FTC is going after the “pieces of shit companies” that actually might be helping these borrowers?

With banks like Bank of America only modifying up-to 7% of the loans eligible for the government’s Making Home Affordable Program, what makes the FTC and attorneys think that these loan modification companies are actually scams?

Let me play devils advocate here. Once again I am not a fan of Loan Modification companies, in fact, I probably hate them more then the FTC and the government… but let’s for one second pretend that they are actually trying to help home owners.

Recently the California Attorney General released information on “Operation Loan Lies”, a task force that took down some suspected loan modification scam companies. One of the companies according to the press release found here opened some 2960 loan modification files but only completed 311 of them. Wait… what? That’s over 10%. What about BofA’s 7% closing ratio?

The press releases like the one above and others go on to say companies “fraudulently charge upfront fees” to d loan modifications and fail to complete the work.

What if, the problem here isn’t necessary the loan modification companies, but the banks?

The FTC is actively going after loan modification companies who they claim are really scams, but fact remains is most of these home owners that are being helped would probably be losing their homes if it weren’t for these scammers.

Another company in California, Castle Home Loans, is also accused of failing to modify loans. However the press release and article show that they in fact have helped customers with their loan modification, just not enough to stay under the radar apparently.

I think one large point that nobody seems to remember is a lot of the home owners that are having this problem in the first place should have never gotten a home to begin with, through fraudulent means or other. Option Arm’s SISA 95% LTV. Really?

Anyway, fact remains is shit is hitting the fan, I just think that people NEED help and the FTC and DOJ should be selective about who it closes down. A company that has modified 10% of their loans has an active pipeline, and people who are working on files somehow seem like one of the good guys.  Unlike the BofA’s out there who are refusing to help even with guaranteed  funds from the government.

Chris Loan Modification, Mortgage, Scams

Yep. There’s a big difference between writing down the loan balance on a house, and merely setting up an “extend and pretend” repayment plan. If you can’t afford the house now, you’re probably not going to be able to afford it later, especially with all the new fees added on.

The problem is the same one that has plagued loan modifications from the start: Lenders don’t want to write down loan balances. There’s no cramdown provision in bankruptcy court to force them to do so, thanks to opposition in Congress and inaction by the Obama administration.

Yet, as loan modifications fail to stem the foreclosure crisis, the government continues to offer financial incentives to servicers and calls them to Washington occasionally to give them a hard time about not doing more loan mods.

And in the end, here’s what we’re left with, according to USA Today:

Chris Loan Modification