One of the obstacles to preventing foreclosures through loan modifications has been the restrictions in securitization contracts. The pooling and servicing agreements ("PSAs") that create securitization trusts usually limit the servicer's authority to rewrite mortgage terms on behalf of the investors, even when the modification will prevent a foreclosure and produce a higher return than foreclosure. PSA provisions vary, but it is not uncommon for the servicer's discretion to be limited by a percent-of-pool cap on modifications.
Residential Funding Corp., an affiliate of GMAC and securitizer of subprime mortgages, recently requested and obtained approval from bond rating agency Moody's (Download) to increase the 5% cap on loan modifications in seven loan pools.
The particular contract term in one of the RFC-sponsored trust agreements (Download) is interesting because although it contains a 5% modification cap, it permits the cap to be increased, with the consent of the rating agencies and the insurer (and without the need for consent of the investors). This farsighted PSA contract term solves at least one of the problems that has prevented mutually beneficial mortgage modifications by other servicers. Kudos to whoever drafted this contract! The pool in question has reached a 20% foreclosure rate and cumulative net losses of 2.38%.
HT to Kevin Byers for spotting this on HousingWire.
Although the loan modification process is long and drawn out, if it is something that you need to do, it is not nearly as hard as you may think. You will have a lot of help along the way, and if you are willing to make it work, you will definitely want to consider moving through the many steps with speed and precision.
Posted by: surety bonds | Monday, May 24, 2010 at 10:58 AM
It's great!Nothing more i can say because you've had it all. Thanks for the article you've shared.
LLC
Posted by: lucas law center | Monday, May 25, 2009 at 02:51 AM
ABOUT BAD BIZ FINDER AND LAW FIRMS PRETENDING TO BE LOAN MODIFICATION COMPANIES
Loan modification scams have reached an all-time high in southern California. And Bad Biz Finder is reporting about it at Wordpress. We welcome you to review the blogs at www.badbizfinder/wordpress.com
There is a trend developing where law firms are "sponsoring" loan modification companies to circumvent The California Foreclosure Consultant Act, Civil Code Section 2945-2945.11. They believe that by asking their customers to sign "law firm retainer fee agreements," that they are exempt from the Act and don't have to be licensed by the California Dept. of Real Estate or follow strict guidelines set forth in the Act.
However, these "law firms" have no attorneys; the work is being performed by foreclosure consultants, and consequently, the law firms are breaking the law by sharing legal fees with non-attorneys since the only revenue to the "law firm" is legal retainer fees.
It is a gigantic fraud and very complex but we are unraveling it for our most vulnerable consumers today on our blog and since January 9 have had over 1000 hits. We have been tracking about 56 companies since November in Orange County, San Diego County, Los Angeles County, Riverside County and San Bernardino County.
We made an example of Parsa Law Group and National Loan Modification Center as they were one of the first companies we received complaints about and to date seem to be the most egregious. Beginning in the first month of February we will begin releasing the evidence we have collected on other companies but we wanted to set a foundation of facts prior to that time so consumers could put the scams in 1 of 2 categories:
1. Loan modification companies not in compliance with The California Foreclosure Consultant Act; or
2. Loan Modification firms posing as law firms to circumvent The California Foreclosure Consultant Act.
Bad Biz Finder is a non-profit anonymous consumer advocacy organization based in Fremont, California with chapters all over the state. By the end of February we will have a location in Orange County to handle the overwhelming demand we are facing with this cause. We hold true one singular mission: To offer consumers a source of unbiased facts vital to making informed decisions about everyday issues facing them everyday.
The organization seeks to unearth unethical, illegal and unconscionable practices by individuals, businesses, and organizations and sets the record straight so those who have been harmed have a remedy and those who have not are warned.
Its roots go back to the 1980s when the founder began to become vocal about the vulnerability of consumers and the companies, individuals and agencies that preyed on this vulnerability. Over the past three decades, Bad Biz Finder has championed hundreds of causes and has been an agent for positive change so that the so-called “little guy,” becomes a giant with purpose and power.
Since the late 1980s due to the constant and unnerving legal and personal threats against the organization and its volunteers, Bad Biz Finder has moved locations, changed names, added volunteers and consumer rights attorneys to better serve the public. It is for these reasons that it prefers its anonymity and maintains a simple email address badbizfinder@aol.com.
Bad Biz Finder is self-supporting and asks for nothing in return. Not one day goes by that the organization has not helped scared and hopeless consumers gain footing again, armed with facts that empower them, and for that we are proud.
We do not accept payment, donations, or gifts. In order for our work to be effective, we must be free of bias and completely objective. We simply ask the people we help to "pay it forward," and help someone else for free that is in perhaps the same dire straits they once were and pass along our name as a trusted resource.
Bad Biz Finder
badbizfinder@aol.com
http://badbizfinder.wordpress.com
Posted by: Bad Biz Finder | Saturday, January 24, 2009 at 04:45 PM
Parsa Law Group Loan Mod Investigation Leads to Burkhalter Law Firm
Bad Biz Finder responds to a request from Parsa Law Group’s counsel, Dan Kessler at Burkhalter, et al. They wanted Bad Biz Finder’s attorney’s name and contact information.
Mr. Kessler,
We are a non-profit consumer advocacy organization based in Fremont, California and are not represented by counsel. We have, however, secured a local law firm to represent plaintiffs who have been harmed by your client. We are not ourselves a plaintiff nor are we a single individual seeking confidential information protected by the attorney-client privilege.
We simply seek to confirm that Mr. Clement, a recent partner of Burkhalter, Kessler, Goodman & George, LLP located at 2020 Main Street, Suite 600, Irvine, California, 92614, is in fact the current and correct agent for service of process for Parsa Law Group. I imagine if the information was inaccurate you would have filed an SI 200-C form by now. As well, I can't imagine your taking the time to reply if Burkhalter, Kessler, Goodman & George, LLP was not the current and correct attorney of record for Parsa Law Group.
With that said, Bad Biz Finder has been tracking the activities of your client since the beginning of November when we received our first complaint. Our law firm is poised to take over this matter once we reach our investigative objectives. As yet, we have not retained their services for this cause and have not introduced them to any of the plaintiffs numbering 36 at the end of this day.
As you are corporate counsel to Parsa Law Group, we assume you reviewed the two authorization forms and two legal contracts they send to prospective customers: (1) Modification Counseling and Negotiation Agreement; (2) Client Acknowledgement of Scope of Services; (3) Letter of Authorization; and (4) Debit Card Authorization. They are unconscionable, oppressive and grossly illegal.
Your client is in direct violation of The California Foreclosure Consultant Act, California Civil Code Section 2945 (CFCA) by among other things not being licensed by the Department of Real Estate, collecting advanced fees prior to services rendered, collecting fees after a Notice of Default has been received, and promising a result without which a refund will be made. Since the fees advanced are illegal, a refund would be a moot point wouldn't it? Most of our plaintiffs claim that a nonsensical modification was made and that they were not eligible for a refund.
And this is the best part and why we got involved in the first place. Parsa Law Group is attempting to circumvent the California Foreclosure Consultant Act by charging legal retainer fees and claiming that the work is being done by attorneys.
We know for a fact that this is not true as we have two people on the inside of your client's operations. Your client was so clever to read the fine print in the CFCA that states, "law firms that practice real estate law in their ordinary course of business are exempt from the CFCA rules." However, a licensed attorney is not handling these cases, foreclosure consultants are handling them and they have no idea what they are doing.
These foreclosure consultants are being trained, misled, and encouraged to criminally defraud customers by David A. Lindsey, Director of Sales. As far as we know, James Mazi Parsa is the only attorney on staff at National Loan Modification Center unless they are hidden away down in the cellar.
FACT: When you call and speak with Parsa Law Group that claims to perform loan modifications, you are not speaking with an attorney, you are speaking with a loan foreclosure consultant who is paid strictly on commission from "retainer legal fees."
FACT: It is against the law for an attorney to share fees with non-attorneys. Hence, since the revenue of the company is "legal retainer fees," and the loan foreclosure consultant is being paid a commission on the "legal retainer fees," they are SHARING legal fees.
FACT: Parsa Law Group has only one attorney, James M. Parsa, Esq. (As a matter of fact, it states right on the National Loan Modification Center website that the Parsa Law Group is "sponsoring" the activities of NLMC) which leads us to believe that Mr. Parsa is truly not handling any of the cases.
Now look, Dan, we know you know what is going on and everyone is making a lot of money. We even have on record one of the consultants saying, "Yah, we're going for broke because the gig is up in about a year." Our organization gets fired up when consumers in desperate times are defrauded by companies that consciously take their "last resort" funds and give them nothing in return. It’s disgusting and Bad Biz Finder will not stand for it. Next week our press release goes out.
You communicate directly with Bad Biz Finder or you and your firm will be held accountable right along with your client. We are calling for the immediate disbarment of James Parsa, criminal charges against the firm and Mr. Parsa and Mr. Lindsey individually, a complete accounting of funds collected since the inception of NLMC, a refund of all funds collected, and an immediate closure of operations.
Do you know the ironic part of this whole thing and how we plan to lead off our press release? The name "Parsa" means pure, virtuous, righteous, chaste and faithful. Now ain't that something?
Bad Biz Finder
badbizfinder@aol.com
http://badbizfinder.wordpress.com
Posted by: Bad Biz Finder | Saturday, January 24, 2009 at 04:40 PM
PARSA LAW GROUP IS BREAKING THE LAW BY SHARING LEGAL FEES WITH EMPLOYEES OF NATIONAL LOAN MODIFICATION CENTER THAT ARE NOT ATTORNEYS
The Rule of Professional Conduct 1-320 forbids attorneys from having financial arrangements with non-lawyers. This means that if Parsa Law Group is retained to handle a loan modification on your behalf, it is mandatory that an attorney licensed to practice law in the state of California under the employ of Parsa Law Group is handling the matter directly.
This is not the case at Parsa Law Group. When you call Parsa Law Group or National Loan Modification Center (sponsored by Parsa Law Group), your matter is being handled by a foreclosure consultant that is not an attorney licensed to practice law in the state of California. National Loan Modification Center cannot benefit financially from legal retainer fees collected by Parsa Law Group. But that's what they're doing by paying commissions to non-attorneys off "legal retainer fees" collected.
Since the employees of National Loan Modification Center are not licensed attorneys, they may be prosecuted for practicing law without a license or possible charges of “capping” (which entails soliciting business for an attorney) and attorney James Mazi Parsa, owner of Parsa Law Group and National Loan Modifcation Center will be disciplined for sharing fees with non-attorneys.
To circumvent the California Foreclosure Consultant Act, California Civil Code Section 2945, which prohibits loan modification companies from collecting advanced fees, National Loan Modification Center (sponsored by Parsa Law Group) decided it would collect "legal retainer fees" instead. They thought they would not get caught because the California Foreclosure Consultant Act states that attorneys that practice real estate law in the ordinary course of business are exempt from the rules of this Act. But they forgot about that darn sharing attorneys fees thing, or so they would like you to believe.
So, before you sign anything or even give over any information to National Loan Modification Center or Parsa Law Group, ask to speak with the attorney that will be handling your case. If you actually speak with someone, ask him/her the following questions:
1. What is your full name?
2. What is your California State Bar number?
3. Where did you graduate from law school?
4. What year did you graduate from law school?
5. What year were you admitted to practice law in the state of California?
6. What is your experience in real estate law?
(Ask for the name and telephone number of the firm they worked for.)
7. Are you currently an attorney member of the law firm of Parsa Law Group?
Then say, “Thank you, I will call you back after I have confirmed that all these facts are true.” Then go to the State Bar of California website at www.calbar.org and click on Attorney Search. Type in the name of the attorney and verify that all the information gathered from questions 1-5 is accurate. Now, there are many attorneys with the same name, so make sure you ask for middle initials, middle names or how their name is stated at the State Bar of California.
Then call the firms that the “attorney” has worked for to gain the requisite knowledge to help you save your house and negotiate on your behalf with a lender. Find out if the attorney worked at that law firm and for how long.
Let us know how it turns out. Be safe and be empowered by knowledge that can save your house and your wallet.
Bad Biz Finder
badbizfinder@aol.com
http://badbizfinder.wordpress.com
Posted by: Bad Biz Finder | Saturday, January 24, 2009 at 04:38 PM
Would Someone PLEASE Explain To Me The CA Foreclosure Consultant Act, Like I'm a Third Grader?
Don’t you just hate it when legislators write laws in such a way that the folks they are trying to protect can’t understand them?
And the text of the law sends you on a wild goose chase by not giving you all the information you need right there? For example, The California Foreclosure Consultant Act in defining what a foreclosure consultant is NOT, says, “A person licensed under Part 1 of Division 4 of the Business and Professions Code.”
Now you have to go look up Part 1 of Division 4 of the Business and Professions Code to know what they’re talking about. That is, if you even know where to find the Business and Professions Code. It makes Bad Biz Finder, MAD Biz Finder.
Do you think that this practice is due to the fact that those legislators are so dang brilliant that they think, write and talk on a plane above everyone else? Nope.
It’s a deliberate method to confuse you and discourage you from suing the pants off violators of the law. Bad Biz Finder has been encouraging you to read The California Foreclosure Consultant Act so you can understand your rights under the law. Our bad. We should have explained it to you long ago.
We’re going to break this sucker down into plain English so you can truly UNDERSTAND your rights. If you are bi-lingual and can help someone with a translation, we would sure appreciate it. As the text is long, we will post explanations of each of the subsections into different blogs.
California Civil Code Section 2945:
California lawmakers found that foreclosure consultants have a significant impact on the economy of this state and on the welfare of its citizens.
They also realized that an impending foreclosure could cause California homeowners to panic and make irrational decisions based on fear.
And that homeowners needed to be protected from predatory business practices that would prey on their vulnerabilities leaving them subject to fraud, deception, harassment, and unfair dealing by foreclosure consultants.
The intent and purposes of The California Foreclosure Consultant Act are summarized in five categories.
1. To require that foreclosure consultant service agreements be expressed in writing;
2. To safeguard the public against deceit and financial hardship;
3. To permit rescission (cancellation) of foreclosure consultation contracts;
4. To prohibit representations that mislead;
5. To encourage fair dealing in the rendition (offering) of foreclosure services.
To accomplish their mission, legislators also looked at the following facts while writing the law:
- Foreclosure consultants represent that they can assist homeowners who have defaulted on obligations secured by their residences. These foreclosure consultants, however, often charge high fees, the payment of which is often secured by a deed of trust on the residence to be saved, and perform no service or essentially a worthless service.
- Homeowners, relying on the foreclosure consultants' promises of help, take no other action, are diverted from lawful businesses which could render beneficial services, and often lose their homes, sometimes to the foreclosure consultants who purchase homes at a fraction of their value before the sale.
- Vulnerable homeowners are increasingly relying on the services of foreclosure consultants who advise the homeowner that the foreclosure consultant can obtain the remaining funds from the foreclosure sale if the homeowner executes an assignment of the surplus, a deed, or a power of attorney in favor of the foreclosure consultant.
- This results in the homeowner paying an exorbitant fee for a service when the homeowner could have obtained the remaining funds from the trustee's sale from the trustee directly for minimal cost if the homeowner had consulted legal counsel or had sufficient time to receive notices from the trustee regarding how and where to make a claim for excess proceeds.
If this was helpful and you want to know how the law defines what a foreclosure consultant IS and what it is NOT, read the next blog entitled, “Give it to Me Straight! What a Foreclosure Consultant IS and IS NOT.” It is a plain English explanation of California Civil Code Section 2945.1, this law's first sub-section.
Bad Biz Finder
badbizfinder@aol.com
http://badbizfinder.wordpress.com
Posted by: Bad Biz Finder | Saturday, January 24, 2009 at 04:35 PM
Bad Biz Finder wishes to thank Mr. Andrew E. Traulsen for corroborating the truth about Parsa Law Group. He entered a comment into our blog today that speaks volumes:
I don’t know what experiences you had with the Parsa Law Group but I had a very good experience with National Loan Modification Center. I suppose that in any situation there are going to be both good and bad experiences. I got my adjustable loan modified from 8.99 to 6.99 fixed. I know that it cost me some money to do it but I think the savings of $746 a month was worth it. My wife lost her job and we were losing our home. I recommended them to a friend of mine but they couldn’t help him because it was too late for him. If they are as bad as you say why would they turn down money? I never met Mr. Parsa but National Loan Modification Center did what the rep said they were going to do, although he thought it would be a difference of over $800, the $746 was extremely good news.
Here is our response:
Mr. Traulsen,
We thank you for your comments as we always try to post opposing viewpoints in the name of respect for you and the doctrine of fundamental fairness. We often get emails from folks defending the company we are exposing and as we don't know for certain the facts in your situation, we honor them just the same.
However, you have pointed out a couple of issues which lend credence to our cause. You state, "I never met Mr. Parsa but National Loan Modification Center did what the "REP" said they were going to do." You may not know this, but according to Parsa Law Group, they are not a loan modification company under the auspices of The California Foreclosure Consultant Act, they are a LAW FIRM.
They state they are exempt from The California Foreclosure Consultant Act because their highly-qualified group of attorneys will get the job done for you as only an attorney can do. The fact that services rendered were not by an attorney licensed in the state of California, rather a loan foreclosure consultant ("rep") satisfies our arguments about the illegal nature of business activities at the Parsa Law Group.
Do you know that you could have gotten your adjustable rate mortgage modified from 8.99% to 6.99% ALL BY YOURSELF? What did you pay Parsa Law Group in "legal retainer fees" to do this for you? Did you ever speak to an attorney at all?
And the promise by the rep of "a difference of over $800 per month," didn't pan out, did it? So, actually the "rep" didn't do what they promised to do after all.
As far as the friend that got turned down because his loan was too far gone --- we at Bad Biz Finder would love to hear from him. Our records indicate 39 customers to date (since November) that have been taken for legal retainer fees after a Notice of Default was already served.
We're very glad that you are paying less per month on your mortgage and we hope your wife is successful in securing work in the near future. But may we suggest just one more thing? Take all your new loan documents to an attorney licensed to practice law in the state of California immediately.
That $746 you are saving per month might have all kinds of hidden disadvantages down the line long after Parsa Law Group has been shut down. National Loan Modification Center is not licensed by the Department of Real Estate, does not adhere to the law surrounding foreclosure consultants, and is thus, not qualified to do the work that they did for you. We're concerned that perhaps your new loan documents may not be in order.
Of course, this is just a precautionary measure. We wish you the very best in the future.
Bad Biz Finder
badbizfinder@aol.com
http://badbizfinder.wordpress.com
Posted by: Bad Biz Finder | Saturday, January 24, 2009 at 04:31 PM
Parsa Law Group's "Retainer Agreement" is Here
Bad Biz Finder promised you we would post the documents Parsa Law Group gives to their clients. The first one called, "Modification Counseling and Negotiation Agreement." This is purportedly their "legal retainer agreement."
We are not responsible for all the funky font sizes, italics, bold, colors, and so forth. This is exactly how it is presented.
We don't know where to begin.... judge for yourself and look for the contract requirements under The California Foreclosure Consultant Act in our blog soon as well as California licensed attorney Retainer Agreement requirements.
Were you sleeping that day, Dan Kessler?
Parsa Law Group
A Professional Law Corporation
3200 Park Center Drive, Suite 1 !0, Costa Mesa, CA 92626
TEL (714) 352-3500; FAX (714) 352-3935
Client Initials ___________
Modification Counseling and Negotiation Agreement
This is the written fee agreement ("Agreement") that the law requires attorneys to have with their clients. Parsa Law Group, A Professional Law Corporation, (hereafter “Attorney” and/or the “Firm” and/or “Parsa Law Group”), will provide legal services to ____________________________________ (“Client”) on the terms set forth below.
This Agreement will not take effect, and Attorney will have no obligations to provide legal services,until Client returns a signed copy of this Agreement.
RECITALS:
WHEREAS Parsa Law Group is a Professional Law Corporation in the business of Litigation,Counseling and Negotiation;WHEREAS Client wishes to employ Parsa Law Group to negotiate with their current lenders on real estate to restructure the current debt in a way that will allow Client to achieve and maintain financial stability;
WHEREAS Client understands and hereby acknowledges that legal services provided by Parsa Law Group are not guaranteed, no particular result has been promised or guaranteed, no prediction of result has been made;
NOW THEREFORE in consideration of the foregoing and every term, covenant and condition hereafter set forth, Parsa Law Group, Client do hereby understand, covenant and agree as follows:
OBLIGATIONS OF CLIENT.
Provide Complete and Truthful Information. Client shall provide Parsa Law Group, in a timely fashion, all information requested by Parsa Law Group reasonably necessary for Parsa Law Group to perform the Services. Failure by Client to provide Parsa Law Group all information so requested within seven (7) day’s execution hereof shall constitute a waiver by Parsa Law Group of any obligation for performance hereunder. Client expressly represents and warrants to Parsa Law Group that he/she/they will at all material times, provide Parsa Law Group with information that is accurate and true to the best of their knowledge and belief. Client hereby agrees to defend and hold harmless Parsa Law Group from and
Counseling Agreement against any liability of any nature whatsoever arising out of or in connection with Client’s breach, in whole or in part, of the representations and warranties herein contained.
Client agrees to be truthful with Parsa Law Group, to keep Parsa Law Group informed of any information and developments which come to Client's attention, to abide by this Agreement, to pay PARSA LAW GROUP’s costs on time and to keep Parsa Law Group advised of Client's address, telephone number(s) and whereabouts. Client agrees to provide Parsa Law Group with any and all notices received from mortgage lender(s) and/or loan servicer(s) within three (3) business days of receipt. Client agrees to appear at all meetings Parsa Law Group deems necessary and to cooperate fully with Parsa Law Group.
SCOPE OF SERVICES.
Upon receipt of the flat fee pursuant to Exhibit “A”, Parsa Law Group will undertake to provide the following services to Client:
Client Initials ___________
1. An analysis of Client’s present financial situation based on documentation provided by
Client;
2. Assistance in preparation of a loan modification request package and transmittal of the
same to the Lender based on information provided by Client;
3. Assist Client in the preparation and drafting of a hardship letter to the Lender;
4. Conduct phone calls with the Lender in an attempt to negotiate a loan modification, if
possible, of the Loan;
5. Promptly communicate the results of Parsa Law Group’s efforts to Client (collectively
referred to as the “Services”). Parsa Law Group does not provide brokerage and/or accounting professional services.
Client is advised to consult with client’s broker and/or accountant regarding any issues that may affect client in areas outside the scope of Parsa Law Group’s services. Loan modifications can have significant legal and tax implications. Furthermore, in the event client directly negotiates with the lender after retaining Parsa Law Group’s services, this agreement will automatically terminate without notice to client and Parsa Law Group will retain one hundred percent (100%) of
the fees paid and the client’s file will be deemed closed. Parsa Law Group disclaims any responsibility or liability arising from any loan modification services if the client communicates directly with the lender. Please see exhibit “B” attached hereto.
Entire Agreement.
This Agreement constitutes the entire agreement between the parties. Parsa Law Group makes no warranty, express or implied, as to the fitness of any recommendation it may make to Client arising out of this Agreement. Except for cause, Client unconditionally waives any right of action against Parsa Law Group, its officers, directors, employees, agents, brokers and assigns, at law, equity or any other cause of action for any reason, directly, indirectly or proximately believed to arise out of this Agreement, for any damages of any nature whatsoever that Client may incur by reason of Client following any recommendation of
Parsa Law Group or Client’s failure to follow any recommendation of Parsa Law
Group, whether any singular, concurrent or series of recommendations are acted upon or not acted upon in whole or in part by Client.
Gender.
Whenever used in this Agreement, the singular shall include the plural, the plural shall include the singular, and the neuter gender shall include the male and female as well as a trust, company, corporation, or other legal domestic or foreign entity, all as the context and meaning of this Agreement may require.
Headings.
The paragraph titles and headings contained in this Agreement are inserted as a matter of
convenience and for ease of reference only, and shall be disregarded for all other purposes including the construction or enforcement of this Agreement or any of its provisions.
Client Initials ___________
Cross-references.
All cross-references in this Agreement, unless specifically directed to another agreement or
document, refer to provisions in this Agreement and shall not be deemed to be references to the overall agreement or to any other agreements or documents.
Time Essence.
Time is of the essence of every provision of this Agreement that specifies a time for performance.
Facsimile Signatures.
The parties mutually understand and agree that signature of a facsimile copy of this Agreement shall be deemed an original for all lawfully enforceable purposes.
Agreement Received.
By virtue of their signatures below, Client acknowledges that he/she has read, understands and agrees to every term, covenant and condition of this Agreement and that he/she has received a true and complete copy hereof, effective the date first above written.
Counterpart Execution.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Client retains Attorney to represent Client in connection with facilitating loan modification of residential property.
Parsa Law Group will represent Client in a Counseling and negotiation capacity only. No litigation or litigation related activities are contemplated at this time, and this Agreement does not encompass such matters.
Parsa Law Group will provide those legal services reasonably required to represent Client in the matters described above and will take reasonable steps to keep Client informed of significant developments, and to respond promptly to Client's inquiries and communications.
Client agrees to be truthful with Parsa Law Group, to keep Parsa Law Group informed of any information and developments which come to Client's attention, to abide by this Agreement, to pay Parsa Law Group's costs on time and to keep Parsa Law Group advised of Client's address, telephone number(s) and whereabouts.
Client agrees to appear at all meetings Parsa Law Group deems necessary and to cooperate fully with Parsa Law Group on all matters related to the investigation, preparation and presentation of Client's claims.
Parsa Law Group will be compensated for legal services rendered, as follows: (Please see
Schedule A)
Client will be entitled to a prorated refund of retainer fee in the event that Parsa Law Group is unable to successfully negotiate a workout solution on behalf of client. A successful workout solution may include an exit strategy or other terms that did not meet the client’s original expectations. Parsa Law Group cannot guarantee the terms of the workout solution, only that one will be reached. Clientptance of the workout solution is not required to be considered a successful negotiation. Refund is listed on Schedule A.
INDEMNITY.
Client shall, to the fullest extent permitted by law, indemnify, defend (with legal counsel acceptable to Parsa Law Group), protect and hold harmless Parsa Law Group and its respective shareholders, directors, officers, employees, consultants, parent, subsidiary and affiliated entities, partners, members,sureties, insurers, attorneys, agents, predecessors, successors and assigns (individually and collectively
Client Initials ___________
“Parsa Law Group Related Persons”) from and against any and all claims, actions, causes of action, rights, defenses, demands, allegations, damages, fines, penalties, liabilities, losses, encumbrances, liens, obligations, settlements, judgments, awards, appeals, costs and expenses (including but not limited to actual fees and costs of attorneys, expert witnesses and other consultants) of any kind or character in law, equity or otherwise (individually, a “Claim” and collectively, “Claims”) regarding, arising out of or in connection with or in any manner relating to the Services and Client’s Loan, including without limitation any misrepresentation or false statements made by Client in connection with Client’s Loan (including but not limited to any active or passive negligence or breach of this Agreement by Client); provided, however,that such indemnification shall not apply to the extent any Claims are caused by the gross negligence or willful misconduct of Parsa Law Group.
DISCLAIMER.
Neither this Agreement nor Parsa Law Group purport, or intend to purport, to address other claims and/or loans of the Client that may arise and may require additional professional services including, without limitation: accounting or brokerage services.
If additional professional services are necessary in connection with Client's claims and/or Loan, Client must seek counsel from the appropriate field as Parsa Law Group does not perform such services.
Parsa Law Group does not guaranty any result arising from the Services provided for Client. Nothing contained herein is intended to or may be construed as a promise or guaranty. Moreover, Parsa Law Group cannot promise, predict, or otherwise guaranty that Client’s Loan will be modified or adjusted.
Any statements by Parsa Law Group or its employees regarding the outcome of Client’s matter are expressions of opinion only. Client acknowledges Parsa Law Group has not promised or guaranteed to stop any foreclosure sale of Client’s property.
Parsa Law Group will use its best efforts to negotiate and counsel Client in Real Estate matters related to a Loan Modification of residential real property. Should Client request Parsa Law Group to negotiate a deed in lieu of foreclosure as an alternative to a Loan Modification, an additional fee shall be required by Attorney for such negotiation and counseling.
Other than the fee structure discussed in the preceding paragraph, no out-of-pocket monies will be due from Client to Parsa Law Group for legal services.
The fees set forth in Schedule A are not set by law, but are negotiated between Parsa Law Group and client.
Parsa Law Group will incur various costs and expenses in performing legal services under this Agreement. Parsa Law Group agrees to pay for all costs and expenses. Costs and expenses commonly include photocopying and reproduction costs, notary fees, long distance telephone charges, messenger and other delivery fees, postage, travel costs including parking, travel and lodging expenses, investigation expenses, and other similar items.
This Agreement does not cover other related claims that may arise and may require legal services.
(For example: lender lawsuits, disputes with Client's insurance company regarding coverage or amount of loss or reimbursement for benefits paid, disputes with Health Care Providers regarding amounts owed or reimbursement of any deficiency.)
Client Initials ___________
If additional services are necessary in connection with Client's claims and Client requests Parsa Law Group to perform such services, an additional fee arrangement must be made between Parsa Law Group and Client in writing. Such additional services may be required, for example, in defense of a lawsuit, cross-complaint or other cross demand filed against Client in connection with the abovereferenced matter.
Parsa Law Group will not make any settlement or compromise of Client's claims without Client's prior approval. Client retains the right to accept or reject any adverse party settlement offer, if applicable.
Client agrees not to make any settlement or compromise of Client's claims without prior notice to Parsa Law Group.
Client may discharge Parsa Law Group at any time, upon written notice to Parsa Law Group.
Parsa Law Group may withdraw from representation of Client (a) with Client's consent, (b) upon court approval, or (c) for good cause upon reasonable notice to Client, (d) for Client’s failure to cooperate with PARSA LAW GROUP and provide documents and information. Good cause includes Client's breach of this Agreement, Client's refusal to cooperate with Parsa Law Group or to follow Parsa Law Group's advice on a material matter, or any other fact or circumstance that would render Parsa Law Group's continuing representation unlawful or unethical.
Client hereby grants Parsa Law Group a lien on any and all claims or causes of action that are the subject of Parsa Law Group's representation under this Agreement. Parsa Law Group's lien will be for any sums owing to Parsa Law Group for any unpaid costs or fees at the conclusion of Parsa Law Group's services. The lien will attach to any recovery Client may obtain, whether by arbitration award, judgment, settlement or otherwise.
Arbitration.
The parties hereto, expressly agree to arbitrate any and all disputes that may arise between them concerning the performance of this contract with any recognized California Arbitration service. Said arbitration shall be the exclusive venue for seeking legal redress. The parties agree to equally share the initial cost of any such arbitration. Attorney’s fees and costs shall be awardable to the prevailing party.
Nothing in the Agreement and in Parsa Law Group's statements to Client maybe construed as a promise or guarantee about the outcome of this matter. Parsa Law Group makes no such promises or guarantees. There can be no assurance that Client will recover any sum or sums in this matter or have his loan modified or deficiency waived, and in fact, Client may be liable for deficiency judgment resulting from foreclosure sales, or required to sign a promissory note by mortgage lenders. Parsa Law Group's comments about the outcome of this matter are expressions of opinion only. Client acknowledges that Parsa Law Group has made no promise or guarantee about the outcome of this matter. Specifically, Client
acknowledges Parsa Law Group has not promised or guaranteed to stop any foreclosure sale of Client’s property, but rather has agreed to use his best efforts to stop such a sale from going forward.
This Agreement contains the entire agreement of the parties. No other agreement, statement or promise made on or before the effective date of this Agreement will be binding on the parties. This Agreement may be modified by subsequent agreement of the parties only by an instrument in writing signed by both of them. This Agreement will govern all legal services performed by Attorney on behalf of Client commencing with the date Attorney first performed services.
Client Initials ___________
The parties have read and understand the foregoing terms and agree to them as of the date
attorney first provided services. The client(s) shall receive a fully executed duplicate of this agreement.
__________________________________________
Parsa Law Group
______________________________________
CLIENT
_______________________________________
CLIENT
Client Initials ___________
Parsa Law Group
A Professional Law Corporation
Schedule A – Retainer Fee
Concurrent with the execution hereof, Client shall pay Parsa Law Group a flat fee which shall be determined according to the nature of the Loan, as more particularly described below:
Property Address: ___________________________________________
___________________________________________
Loan Servicer: ___________________________________________
Loan Number: ___________________________________________
Client agrees to pay the fee of $ 2675.00 [fee charged the client that sent us these documents]
Client agrees that payment of the fee will be made as follows:
$ _______________ (Amount) Due: __________ Client Initials: __________
$ _______________ (Amount) Due: __________ Client Initials: __________
$ _______________ (Amount) Due: __________ Client Initials: __________
$ _______________ (Amount) Due: __________ Client Initials: __________
Client will be entitled to a prorated refund of retainer fee only in the event that Parsa Law Group is unable to successfully negotiate a workout solution on behalf of client. A successful workout solution may include terms that do not meet client’s expectations. Parsa Law Group cannot guarantee the terms of the workout solution, only that one will be reached. Client acceptance of the workout solution is not required to be considered a successful negotiation.
If applicable client will receive a refund in the amount of $1500.00
(This amount is mutually agreed upon by client and attorney. Client agrees to release Parsa Law Group a Professional Law Corporation from any and all other claims).
By signing below the client agrees to the payment terms detailed above.
______________________________________ ________________
CLIENT Date
_______________________________________ ________________
CLIENT Date
Bad Biz Finder
badbizfinder@aol.com
http://badbizfinder.wordpress.com
Posted by: Bad Biz Finder | Saturday, January 24, 2009 at 04:28 PM
Assembly Bill No. 180 Will Make it Impossible for Scams Like Parsa Law Group to Stay Open for Business
James Parsa is delusional. We genuinely believe that HE believes that Parsa Law Group is a group of real estate attorneys performing loan modifications within the law. His blogs scare us; have you read them?
If Parsa Law Group and National Loan Modification Center are still in business on July 1, 2009 when this bill takes action, there is something very wrong with this state’s Attorney General’s Office and Department of Real Estate.
And for you other law firms that haven’t as yet been called out by Bad Biz Finder, AB 180 will make it even more difficult for you as well. Its primary goal is to implement even tighter controls over foreclosure consultants.
For example, the new law will extend the homeowner’s right to cancel the loan modification contract from 3 business days to 5 business days and makes the Notice of Cancellation process simpler.
Since Parsa Law Group doesn’t even offer a Notice of Cancellation to its clients, I guess this wouldn’t apply to them, right?
The new law will also prevent foreclosure consultants / pretend law firms from obtaining a Power of Attorney from a homeowner for any reason.
It will also require foreclosure consultants / pretend law firms to register with the Department of Justice and maintain a surety bond of $100,000.00. And the DOJ (who henceforth will be the oversight board) will reserve the right to refuse to issue or to revoke a foreclosure consultant’s registration.
A violation of these provisions will be a crime. But what about the next SIX months before AB 180 goes into effect?
Please help Bad Biz Finder take action NOW by reporting any unlawful activity for which you are aware to badbizfinder@aol.com.
Thank you.
Bad Biz Finder
badbizfinder@aol.com
http://badbizfinder.wordpress.com
Posted by: Bad Biz Finder | Saturday, January 24, 2009 at 04:24 PM
Parsa Law Group / National Loan Modification Center is NOT IN COMPLIANCE with Contract Requirements under the CA Foreclosure Consultant Act
Section 2945.3 of the California Foreclosure Consultant Act (also known as Civil Code Section 2945.3) defines the required elements of a contract between a customer and a loan modification company (foreclosure consultant).
Of course, since Parsa Law Group / National Loan Modification Center represents itself as a law firm, they don’t believe that this applies to them. But, oh, it does.
Last week we posted the current “Legal Retainer Agreement” that Parsa Law Group is using to engage clients in loan modification services. You might want to look at that agreement alongside the following requirements and see if they match. Okay, we’ll save you the time – they don’t.
1. It must specifically state the services that will be performed by the foreclosure consultant and the total amount to be paid for these services.
2. The following text (“Notice”) must be included in the contract directly following the services and fees section as described in #1 above. The Notice must include the name of the foreclosure consultant typed into the contract [we inserted National Loan Modification Center] and this Notice must be typed in at least a 14-point font:
“NOTICE REQUIRED BY CALIFORNIA LAW: National Loan Modification Center (sponsored by Parsa Law Group) or anyone working for the company CANNOT (1) Take any money from you or ask you for money until National Loan Modification Center (sponsored by Parsa Law Group) has completely finished doing everything it has said it would do; and CANNOT (2) ask you to sign or have you sign any lien, deed of trust, or deed.”
3. The contract language used must be consistent with the language that the foreclosure consultant uses to describe its services or to negotiate the contract from one client to the next.
4. The contract must be signed and dated by the homeowner and shall contain the following two sentences immediately below the signature line in a size equal to the font of the contract (or at least 10 font size) and in boldface type:
"You, the owner, may cancel this transaction at any time prior to midnight of the third business day after the date of this trasaction. See the attached notice of cancellation form for an explanation of this right."
5. On the first page of the contract (in a size equal to the font of the contract (or at least 10 font size) the contract must state the name and address of the foreclosure consultant to which the "Notice of Cancellation" must be mailed and the date the homewoner signed the contract.
6. The contract must have a “Notice of Cancellation” form attached to it in duplicate that is removable from the contract and the text for the form must be in a size equal to the font of the contract (or at least 10 font size) as follows:
NOTICE OF CANCELLATION
______________________________
Date of the Transaction
You may cancel this transaction, without any penalty or obligation, within three business days from the above date. To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram to NATIONAL LOAN MODIFICATION CENTER [name of foreclosure consultant] at 3200 Park Center Drive, Suite 1110, Costa Mesa, CA 92626 [address of foreclosure consultant’s place of business] NOT LATER THAN MIDNIGHT OF _______________________ [insert the date that represents three business days from the “Date of the Transaction” entered above.]
I hereby cancel this transaction.
Date of Cancellation: ________________________
___________________________________________
Name and Signature of the Homeowner
7. The foreclosure consultant must give the homeowner a copy of the contract and the attached notice of cancellation and until the foreclosure consultant has done this, the homeowner may cancel the contract.
8. After sixty-five (65) days have gone by after a foreclosure sale, the foreclosure consultant may enter into a separate contract with the homeowner to help them with the release of any surplus funds remaining after the foreclosure sale. However, prior to entering into that separate contract, the foreclosure consultant must give the homeowner a Notice in 14-point boldface type as follows:
NOTICE TO OWNER
____________________ ________________________
Date of Contract Date Signed by Owner
____________________________
Date of Foreclosure Sale
You may be entitled to receive all or a portion of the surplus funds generated from the foreclosure sale of your real property located at: _______________________, California on __________________ [Date of Sale] without paying any fees or costs of any kind to a third party.
You should check directly with the trustee or beneficiary who conducted the foreclosure sale of your property to determine the name, address, and telephone number of the party to whom you can direct inquiries regarding filing a claim for surplus funds without paying a fee to a third party.
No person or entity may require you to enter into any agreement requiring the payment of a fee to that person or entity in order to receive the surplus funds from the foreclosure sale to which you may be entitled during the 65 days after the date of the trustee's sale.
9. A receipt must be executed by the homeowner and the company and notarized acknowledging a copy of the notice set forth above.
Please, folks, use this to compare the contract a loan modification company is giving you to sign. A good rule of thumb is never sign a contract on the spot. Tell the foreclosure consultant that you would like to take it home to read it carefully.
Don't say, "I want to show it to my attorney." We always encourage as many qualified opinions as possible. Just don't say it to Parsa Law Group / National Loan Modification Center; you may never get a return phone call. Which, actually, is a good thing.
Bad Biz Finder
Posted by: Bad Biz Finder | Saturday, January 24, 2009 at 04:21 PM
Parsa Law Group / National Loan Modification Center VIOLATES EVERY RULE UNDER SECTION 2945.4 of the CA Foreclosure Consultant Act
Section 2945.4 of the California Foreclosure Consultant Act outlines what constitutes a violation of the law by a foreclosure consultant:
1. A foreclosure consultant may not claim, demand, charge, collect, or receive any compensation until after the foreclosure consultant has fully performed each and every service the foreclosure consultant contracted to perform or represented that it would perform.
2. A foreclosure consultant may not claim, demand, charge, collect, or receive any fee, interest, or any other compensation for any reason in excess of 10% per annum of the amount of any loan which the foreclosure consultant may make to the homeowner.
3. A foreclosure consultant may not take any wage assignment, any lien of any type on real or personal property, or other security to secure the payment of compensation. That security shall be void and unenforceable.
4. A foreclosure consultant may not receive any consideration from any third party in connection with services rendered to a homeowner unless that consideration is fully disclosed to the homeowner.
5. A foreclosure consultant may not acquire any interest in a residence in foreclosure from a homeowner with whom the foreclosure consultant has contracted.
Any interest acquired in violation of this subdivision shall be voidable, provided that nothing will affect or defeat the title of a bona fide purchaser or encumbrancer for value and without notice of a violation of this article.
Knowledge that the property was "residential real property in foreclosure," does not constitute notice of a violation of this article. This subdivision may not be deemed to abrogate any duty of inquiry which exists as to rights or interests of persons in possession of residential real property in foreclosure.
6. A foreclosure consultant may not take any power of attorney from a homeowner for any purpose, except to inspect documents as provided by law.
7. A foreclosure consultant may not induce or attempt to induce any homeowner to enter into a contract which does not comply in all respects with Sections 2945.2 and 2945.3.
8. A foreclosure consultant may not enter into an agreement to assist the homeowner in arranging, or arrange for the homeowner, the release of surplus funds prior to 65 days after the trustee's sale is conducted, whether the agreement involves direct payment, assignment, deed, power of attorney, or assignment of claim from an homeowner to the foreclosure consultant or any person designated by the foreclosure consultant.
Bad Biz Finder
Posted by: Bad Biz Finder | Saturday, January 24, 2009 at 04:18 PM
Stumbled upon this page on Google. WARNING: Don't be fooled by companies using a similar name. The REAL National Loan Modification Center, as seen on TV and heard on Radio, that has helped thousands of families save their home can be reached at 1-800-585-1179.
James M. Parsa
Attorney at Law and Consumer Advocate for 17 Years
Parsa Law Group / National Loan Modification Center
1-800-585-1179
3200 Park Center Drive
Costa Mesa, CA 92626
http://www.NationalLoanModificationCenter.com
Better Business Bureau Rating:
http://www.labbb.org/BusinessReport.aspx?CompanyID=100076772
Posted by: Kristyn Harris | Wednesday, January 21, 2009 at 04:57 PM
I actually had a bad experience with one loan modification company and then a good experience with another. The first company took my fee but didn't do anything for over 3 months. It wasn't until I had my cousin, an attorney, threaten them will legal action did I get my money back. My cousin turned me onto an attorney friend of his ( James M. Parsa ) who is doing loan modifications and his firm ( National Loan Modification Center ) got my payment reduced by over $600 per month ( not much to some people but a great deal to me ). People have to be very careful. The process works but people should do their research. Just My Two Cents.
Andrew Traulsen
Posted by: Andrew E. Traulsen | Monday, January 19, 2009 at 02:00 PM
Hi,
I think one of the obstacles to preventing foreclosures through loan modifications has been the restrictions in securitization contracts..
Posted by: fix your credit | Monday, January 05, 2009 at 02:13 AM
This is indeed an interesting post, it seems that you are an expert in your field.
I liked the article its informative especially from people seeking info's like this.
I'll bookmark this one, and i am looking forward for more of your content.
Best Regards,
Craig Leshinger
National Modification Corp
http://www.nationalmodification.com
Posted by: Craig L. on Loan Modificatoin | Monday, October 20, 2008 at 02:23 AM