COLORADO SPRINGS - It was seen as a way for homeowners behind in their mortgage payments to catch up. Earlier this year, President Obama signed a bill that would allow certain homeowners heading into foreclosure to modify their loans. It was welcomed news and millions called their banks to see what could be done.
“I was hoping my mortgage company would be able to help me out, ” with a loan modification, says Richard Marcus of Colorado Springs. Like many others, he was denied. “I knew I was going to lose hours at work and I knew I wouldn’t be able to keep up with two mortgages.”
Both mortgage companies told him that he didn’t qualify under the new plan, so he turned to Federal Loan Modification Law Center, out of California. “I thought they would be doing their job. I got a referral, its not like I just found them on the Internet.”
The Law Center told him they get a Loan Modification on both mortgages; all they needed was proof of employment and $1,500.
Marcus waited for good news from the company, but never heard back. “I started calling and left three messages,” he said. He even tried to call as a new customer, but again, no calls back.
“I haven’t heard anything in over two months.”
According to the BBB in California the company has an “F” rating, something Marcus found out after the fact. Complaints NEWSCHANNEL 13 was able to view show the company failed to provide services promised and out of the 201 complaints, the company only responded to 36.
The Federal Trade Commission is also after the company. In April, the F.T.C filed a complaint in Federal Court. Two weeks later, a cease and desist order was filed to stop the company from advertising on the radio.
According to the F.T.C. those radio ads suggested that the law firm had some ties to the Federal Government, which it doesn’t.
The F.T.C also alleges the company failed to return consumers’ calls or provide updates about the status of their modification loan. The company is also accused of never even trying to contact the consumers’ mortgage company to modify the loans.
We left several messages to get Federal Loan Modification Law Center’s side of the story, but never heard back from the company.
As for Marcus, his family will soon be moving out of their home. His home is heading to foreclosure.
According to the BBB of Southern Colorado, you need to research any company before you sign up for service. In Colorado, it is illegal for a modification company to charge you an upfront fee for its services.
Loan Modification
