California Sues Loan Modification Companies

by Brian Wolfman

I blogged here on Monday about the National Consumer Law Center's recent report on the growing loan modification scam industry. Yesterday, the California Attorney General sued 21 individuals and 14 loan modification companies, alleging that they take desperate homeowners' money but provide them no mortgage relief. Here's the beginning of the AG's press release:

As part of a massive federal-state crackdown on loan modification scams, Attorney General Edmund G. Brown Jr. at a press conference today announced the filing of legal action against 21 individuals and 14 companies who ripped off thousands of homeowners desperately seeking mortgage relief. Brown is demanding millions in civil penalties, restitution for victims and permanent injunctions to keep the companies and defendants from offering mortgage-relief services. "The loan modification industry is teeming with confidence men and charlatans, who rip off desperate homeowners facing foreclosure," Brown said. "Despite firm promises and money-back guarantees, these scam artists pocketed thousands of dollars from each victim and didn't provide an ounce of relief."

Read the entire press release here. Thanks to California consumer advocate Ted Mermin for bringing this to my attention.

Comments

[Utah Loan Modification]

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http://utahmodifications.com/mortgagemodificationmodifyutahloan.html
http://utahmodification.com

[Juliet]

I was frauded by James Griswold and Associates... I hadf to take him to small claims court... I did get a judgement against him but for only half of the fee... And he still hasn't paid me back... He never did anything but get a 3-way authorization... Also he was in buisness w/ MOD USA and they have since been shut down... not sure if they are still doing predatory practices... but griswold is still doing fraudulant loan mods... CONSUMERS BEWARE... THEY ARE SCAMMERS... don't do buisness w/ Haffar and Accociates either... they are scammers too... call HUD they will get you reliable company...

[SUSAN]

I know what it is like to be scammed by one of those attorneys! Mine took $7500 up front and kept it for 9 months thank goodness the Attorney General came out with the crack down and I know people in the FBI. She was not going to give the money back but she got scared. A combination of that and badbizfinders. She gave it back. The problem is I lost my house because of that scam artist and she is out there doing it to other people. When you are vulnerable you will believe anything. I sit back and read her emails and laugh now. She knew as much about loan modification as the garbage man. Actually he knows more he is losing his house. I think what I want to do now is be an advocate for the people against people like her and when the banks don't listen to you. There will always be greedy people like my low life lawyer she will get hers. She was a lonely old maid driving around in a flashy sportscar trying to get attention who had to turn to stealing. SAD!!!!!!!!!

[Guy]

They have been working on mine for over 7 months same thing they always want bank statements etc. but it always in process.... I think aflg is a scam I paid them $3600.00 Oct 2009 I asked for my money back now they wont return my calls.....

[Hardmoney]

Hard money lenders are always there to help you out. But you need to know about them through reviews on the internet. These reviews will clear their image to you.

[Ben]

I've been ripped off by Star Loan Mods! They don't answer phone calls, website is down and they have breached their contract by failing to complete a loan mod and not refunding my $1250 as stated in our contract. I'm trying to figure out how best to recover my money, small claims, class action...I hear that Shannon Illingworth of Illingworth Trust founded this company. The loan mod rep Jim Wood isn't returning my calls and the referral source, Neil Anders claims to no longer works there. Does anyone have any information?

[J. Tevere]

We have been scammed by Griswold and Agdeppa. They took our money and have done nothing for us. It's been over a year and no loan modification. Mr. Agdeppa does not respond to calls or e-mails. They are thieves.

[Tina]

Hello, does enyone work with or know America Financial Law Group /Attorney Andrea Loveless.
They work on my loan modification for already four month,no cuccess so far.Please, enyone who knows them.
Thanks

[wallysmama]

I work for a legitimate attorney who does thoughtful and thorough discovery and research in his prelitigation research to assist homeowners in trouble. We NEVER offer to do forensic loan audits as they are worthless and a scam. The banks are in so deep and are so overwhelmed and have so many lawsuits pending against them already that they don't care about allegations of TILA or RESPA violations. These audits provide no leverage or benefit.

Don't pay for one.

[Jake]

Hello does anyone have feedback on a company named Christian and Associates in CA ? They are offering loan mods -forensic loan exam...for $3500
Thanks

[Ryan]

I worked for Steven L. Dickinson with Dickinson & Associates above. Attorney did nothing while having reps just get money from clients. He had no one to even do the actual work and he was never in the office even. Not to mention he wouldn't even pay his employees sometimes. Guy is a total scum bag and should be behind bars! He used his bar association to steal money!

[tmog]

hey brian wolfman:
why not help this poor individual!!!

[J Choe]

I am a victim of loan mod.fraud. Marc Tow & Associates...he is on the list above. I paid him $3000.00 hoping he will help bring relief. I waited and waited...He pretty much waited until I went into foreclosure and said I should file for Chapter 13 Bankruptcy for additional fee of $1000.00. From February of 2009 till now, I thought he was working on my loan modification. When he was asked of it, I was told he knew nothing of loan modification and that he wants me to go for Chapter 13 filing. Devin Rockefeller works with Mr. Marc Tow (I have a suspicious feeling Marc Tow is also known as CHRISTIAN DILLON who is not allowed to practice law in CA). I need help. I do not know what to do. Mr Marc Tow will not give me my $3000.00 back and says he has been working on my case since I've come to them for help. They have these documents stating they've sent via FED EX in efforts to communicate with me about my loan modifications. I honestly did not receive anything from them, albeit they say they have sent many things in mail. I am frustrated, I am scared to lose my home, and I need help. What do I do? What are my rights? How do we catch this bad person?!?!?!

-J

[Brian Wolfman]

Hello. After many years at Public Citizen, I have moved to Georgetown law school, where I will be a co-director of the Institute for Public Representation (IPR) and head IPRs Civil Rights Clinic. You can reach me at 202 661 6582 and wolfmanb@law.georgetown.edu.

If you want to contact the Litigation Group, contact Litigation Group Director Allison Zieve at azieve@citizen.org.

Brian Wolfman

reply-3P3ND8VUHUI4_4D5PGWCX37RF 12/20/09 23:03

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Comment:

[NT]

Brian, have you ever tried to modify a loan. You should sit in the chair where you are responsible for helping families stay in their homes. Rather than making false accusations, and trying to get rich off sueing someone, try to help them.

Because I really don't think you know what you are talking about!