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Loan Modification Scams Hit Woodland Hills, Elsewhere in California

Blogs from June, 2011

Batch of Dollars

Prosecutors in San Diego are looking for homeowners who paid an up-front fee to a company that promised to lower monthly mortgage payments and never delivered‚ The San Diego Union-Tribune reports.

Unfortunately‚ scams like these are far too common. And sadly‚ Woodland Hills Bankruptcy Lawyers have seen clients come into the office after having been scammed by these swindlers in even more of a tough spot than they were before. While many desperate people believe these scams will help them save their home‚ they rarely work. But filing Chapter 13 Bankruptcy in Woodland Hills will immediately stop the foreclosure process in its tracks. Creditors won’t be allowed to call and bother you and you will be protected from those annoyances while the process goes on.

The San Diego prosecutors are seeking victims of the now-defunct Nations Mortgage Solutions company‚ whose owner recently pleaded guilty to acting as an unlicensed real estate agent while collecting up-front fees for loan modifications‚ which is illegal in California.

The owner has been ordered to pay $6‚500 in restitution‚ but may be subjected to pay restitution for others who come forward in the next two months.

These scams have been taking advantage of distressed homeowners for years. Typically‚ they send mail to homeowners telling them that for an upfront fee –usually between $2‚000 and $3‚000 — they will work on their behalf to modify their home loan. But as is almost always the case‚ the company doesn’t deliver on its promise and the homeowner is out the money with nothing to show.

And while they are probably piling up debt as it is‚ now they have lost money that could be used to make mortgage payments and save their home. In February‚ the Federal Trade Commission banned mortgage assistance companies from charging up-front fees.

This will likely cut back on the number of mortgage relief scams because without up-front fees‚ the companies won’t get paid because they do no work. But while the FTC may have banned the practice‚ it doesn’t mean companies will necessarily adhere to it‚ so homeowners should be sure to watch out for these scams.

A surefire way to avoid foreclosure is by filing Chapter 13 bankruptcy in Woodland Hills. By filing notice‚ you will alert creditors and collection agencies not to contact you and they aren’t allowed while the process is ongoing.

This is how Chapter 13 bankruptcy works: You work with the court to submit a payment plan that will satisfy your debts over a 3 to 5 year period. This means that you are able to keep your house and other large assets while agreeing to a set payment plan. You will wipe out other debts to be able to accomplish the payment plan.

Once the time period is up for your payment plan‚ all unpaid debt is completely eliminated. You can end up paying much less compared to the debt you may now have. The court will appoint a trustee to oversee your case and Woodland Hills Bankruptcy Lawyers will be there every step of the way to make sure your case is handled smoothly and we answer any questions you may have.

Woodland Hills Bankruptcy Attorneys will provide a free consultation to help guide you in making a decision that works for you. In Encino‚ Glendale and Woodland Hills‚ just call.

If you need to speak with a foreclosure litigation attorney in Woodland Hills‚ Encino or Glendale‚ contact Cal West Law at (800) 568-0707 for a free consultation.

Additional Resources:

Prosecutors seeking victims in loan-mod scam‚ By Lily Leung‚ The San Diego Union-Tribune

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