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.

Loan Modification, Scams

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

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.

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.

Loan Modification, Mortgage, Scams

The co-owner of a Campbell consulting firm has been arrested on charges he defrauded hundreds of people whose homes were in foreclosure through a loan modification scam. His partner is wanted for the same felony charges.

Rene Alvarez, 39, of San Jose was taken into custody Thursday by investigators from the Santa Clara County District Attorney’s Office. The investigators are looking for co-owner Mariano Ortega, 34, also of San Jose.

The two have owned M & R Contemporary Solutions since mid-2008.

They lured 500 homeowners throughout California, mostly Hispanic, to participate in a “principal reduction” program that may have generated more than $2 million in fees for the company, according to the district attorney’s office.

Prosecutors say Alvarez and Ortega promised clients they could save their homes from foreclosure by arranging the purchase of their loan by a third-party at a discounted rate. They offered the clients a new principal loan that would lower their monthly mortgage payments, authorities said; the clients paid thousands of dollars each in fees upfront.

But according to former M & R employees, no homeowner was ever helped, the district attorney’s office said in a news release.

Investigators served search warrants at the company’s two Campbell offices. M & R’s bank accounts have also been frozen in an attempt to recover some of the money, the district attorney’s office said.

Prosecutors asked anyone with information on Ortega’s whereabouts or the case to contact Bob Traskowski, an investigator with the district attorney’s office, at 408-792-2938 or btraskowski@da.sccog.org.

source of article is sj news

Loan Modification, Scams

The Obama administration recently announced it was cracking down on loan modification  ”experts” who collect big fees but do little or nothing in return. Here are signs that you might be the target of a loan modification scam, according to the Federal Trade Commission and other agencies.

* You’re asked for upfront fees.

* You’re guaranteed success.

* You’re asked to pay by wire.

* You can’t get them on the phone after paying.

* You’re told to stop paying your mortgage.

* You’re told not to contact your lender or attorney.

* You’re pressured into signing documents you don’t understand.

* You’re asked to sign over your house title.

Free help is available from agencies certified by the Department of Housing and Urban Development. To find a local agency, go to www.hud.gov and click on Foreclosure Avoidance Counseling.

To read the full article click here: http://www.latimes.com/business/la-fi-consumerbriefs19-2009apr19,0,1501753.story

Loan Modification, Scams

The Kansas Attorney General’s Office is warning consumers about scammers who offer to modify mortgage loans for a fee.

“In this time of economic uncertainty, Kansans facing foreclosure are being targeted,” attorney general Steve Six said in a news release late last week.

People who are behind on their mortgages or facing foreclosure are getting phone calls and at-home visits from people offering to modify their loan.

Up-front fees range from $500 to $1,000, the attorney general’s office says, followed by a larger fee based on the size of the loan, typically from $2,500 to $10,000.

Investigators say the companies don’t negotiate on the homeowner’s behalf but merely have the homeowner compile documents that the mortgage company requires for modification, then send the documents to the lender.

If a company claiming to be a modification specialist or a foreclosure rescue operation contacts you, follow these suggestions:

click here to read the full article

Loan Modification, Scams

Attorney General Bill McCollum sued a South Florida loan modification firm and its affiliated companies this week, alleging they violated state law by charging fees for foreclosure rescue services.

The civil lawsuit was filed in Broward County Click here for restaurant inspection reports Circuit Court on Thursday, against Keep Your Property, its owners William R. Colon and Carlos A. Hernandez, and Centro de Prevencion y Educacion Corazones Unidos H.I. Visida Inc., a nonprofit organization, and Economic Alliance Group. The suit alleges they violated state laws prohibiting deceptive and unfair trade.

Colon and Hernandez couldn’t be reached to comment.

Consumers told state investigators that they paid an upfront fee of $2,200 and monthly fees of $550 after the company guaranteed to file all the paperwork required to prevent foreclosure action or lower mortgage payments. But many consumers found later that the company failed to contact lenders and take any action on behalf of homeowners

Loan Modification, Scams