A WARNING!
If seeking a loan modification, you should be wary of a large number of fraudulent companies attempting to assist homeowners with the loan modification process. The fact that these companies are using seemingly reputable television commercials or websites as advertising mediums should not alleviate a borrower’s concerns. The rapidly increasing number of loan modification scam-artists has temporarily caught law enforcement off guard and it may take some time before these culprits are apprehended and their brazen actions are quelled. They are the new predators.
Borrowers should be especially cautious when dealing with companies that demand fees in advance of any services to be provided as this practice in and of itself is prohibited by most state laws. This is illegal in Wisconsin.
A new Wisconsin Statute pertaining to "foreclosure consultants" became effective March 6, 2009. This is Section 846.45, and it is part of "2009 Wisconsin Act 2. Also the company must be licensed as an adjustment service company with the state as provided in Section 218.02 and Wisconsin Administrative Code ("Rule") DFI-Bkg 73.**
To check for licensure go to http://www.wdfi.org/fi/lfs/licensee_lists/ and enter the name of the company
For further assistance with a loan modification, it is advisable to contact an attorney. The U.S. Department of Housing and Urban Developement has a list of approved housing counceling agencies at www.hud.gov.
When a borrower attempts to personally modify a home loan, it is essential to identify modification goals, understand the particular lender’s modification requirements, frequently check on the status of the application’s processing, and be very patient.*
A notary sent to you with documents cannot, by law, give you legal advice or even an opinion. They are there to verify your identity and ascertain that you understand any documents that require notarization. It is assumed that you know what you are doing since the notary is not party to any negotiations. That would create a conflict of interest.
They represent neither interests of the company that sent them or your interest's. The notary is required to report suspected fraud, however, to
the proper authorities.
* Brian Isenhower " Home Loan Modifications Explained" Articlesbase. http://www.articlesbase.com/loans-articles/home-loan-modifications-explained-767484.html
UPDATE!
Operation Loan Lies
July 19.2009
The FTC and several states have formed””Operation Loan Lies” to join together in finding and prosecuting these new predators. Currently there are 189 actions started against around 169 of these companies. California’s Department of Real Estate actions consist of ‘Cease and Refrain” orders since that is the Dept that regulates this kind of business there. There are many many many of those on Operation Loan Lies list. The majority of the fly by night operations are based in California with AZ catching up.All pursue homeowners in other states. Other states have actual lawsuits filed by their attorney generals on behalf of their citizens. Bottom line there is a horde of predators totally ignoring federal and state laws. For the list in PDF form go to:
Like the so called loan officers and mortgage brokers of the sub prime frenzy, these loan modification consulting companies have call centers contacting homeowners offering their product. They are inserting themselves between the homeowner and the asset management or debt department of their lenders and charging a fee. Many do not even make a call to the lender.
It is important to note that not all States have joined in yet. Wisconsin has not but is actively investigating some of these business's. With the passage of Act2 last spring the Department of Consumer affairs can also investigate any complaints involving loan modification/foreclosure consultants.
Worrying about Foreclosure?
July 28, 2009
The Wisconsin REALTORS® Association has a new website that is an excellent source of information if you are concerned about or actually facing forclosure. It's a well laid out site that allows you to quickly access the information you need.
In their announcement they state:
"In addition to addressing questions homeowners may have about Wisconsin's foreclosure process, the site lists action steps for the homeowner to follow and includes credible resources and helpful contact information to help homeowners steer away from foreclosure or navigate through the process with better results. Check out this wonderfully comprehensive foreclosure resource developed by the Wisconsin REALTORS® Association! "
Here is the link to the site
http://www.wisconsinforeclosurekit.org/
ModificationZoom has posted a list of Lender Loss Mitigations Phone Numbers so that you can call your lender yourself to start the process of a loan modification.
Here is the list:
ABM AMRO Mortgage 800-783-8900
Accredited Home Lenders(877) 683-4466
AMC Mortgage Services (Also handles loans originated by Ameriquest and Argent) (800) 211-6926
American Home Mortgage Corp.(877) 304-3100
AmTrust Bank (fka Ohio Savings Bank) 888-696-4444
Bank of America(800) 846-2222
BB&T Mortgage (800) 827-3722
Beneficial 800-333-5848
Charter One 800-234-6002
Chase 800-446-8939
CitiFinancial Mortgage 800-753-3673
Citimortgage 800-283-7918
Countrywide 800-262-4218
Ditech (800) 852-0656 (800) 449-8582
Downey Financial Corp.(800) 824-6902, ext. 6696
Deutsche Bank National Call Number on Mortgage Statement
EMC 800-723-3004
Fifth Third Bank 800-375-1745, Option 3
source: FPR
EverBank (800) 669-7724 ext. 4730
Equity One (Debt collection) (866) 361-3460
First Horizon Home Loans (800) 489-2966
First Merit Bank 888-728-9931
Flagstar Bank (800) 968-7700, ext. 9780
GMAC Mortgage 800-850-4622
GreenPoint Mortgage Funding (800) 784-5566, ext. 5383
Green Tree (877) 816-9125
Homecomings Financial (800) 850-4622
HomeEq Mortgage Servicing ( Debt collection) (866) 822-1471
Household Finance (A HSBC Co.) (800) 333-5848
Household Mortgage (800) 333-4489
HSBC Mortgage 800-338-6441
Huntington National Bank 800-323-4695
Irwin Mortgage (888) 218-1988
Key Bank 800-422-2442
LaSalle National Bank 800-783-8900
Litton Loan Servicing (800) 999-8501 or (800) 548-8665
Mortgage Electronic Registration Systems 888-679-6377
National City 800-367-9305, Ext. 53221
Ocwen Federal Bank 800-746-2936
Option One 866-711-1962
Saxon 800-665-7367
Select Portfolio Servicing 888-818-6032
SkyBank 800-290-3359
Third Federal Savings 888-844-7333
US Bank 800-365-7900
Wachovia Bank of Delaware 866-642-8608
Washington Mutual 866-926-8937
Wells Fargo 877-216-8448
Wisconsin Department of Justice Steps In
The Wisconsin Department of Justice has filed a civil lawsuit against 21st Century Legal Services in Rancho Cucamonga, CA for illegal practices in loan modification in Wisconsin. This lawsuit is based on investigations by the Department of Finance and the Department of Consumer Affairs. Complaints were filed by both homeowners and notary's.
This company is a major bad boy amongst the scammers. Instead of responding to complaints by first their customers then various State and Federal entities, they have changed their name at least twice and continued on in their illegal practice. The FBI raided their offices Sept 23 as well as the owners home. SO over and above civil lawsuits in many states, they are also looking at criminal charges.
If you have been contacted about this company also known as 21st Century Transitional, 21st Century Remod, Fidelity National or East Coast Management, you are dealing with this company. Those are the names it operates under that I know about ...so far.
You can file a complaint about these and any other modification consultant companies you feel have not followed the law at
Consumer Protection Hotline
1-800-422-7128 or
File complaint here