Subprime Swindlers Work A New Angle: Rescue Scams

Bloomberg News:

In early 2008, Cheryl Ann Montero, a California mortgage broker, held a series of free seminars in the clubhouse of the Lone Tree Golf Course in Contra Costa County, a suburban area near San Francisco. The attendees, homeowners facing foreclosure, were desperate for a rescue from their woes. Using a PowerPoint presentation, Montero delivered one.

She said her firm, Freedom Financial Solutions, could pressure lenders to stop foreclosures by challenging the legality of loan agreements, according to court records. Her fee: $2,500 upfront and a $2,000 monthly payment to cover legal costs. Promoting her services on the Web site Craigslist, Montero, a blond-haired, blue-eyed woman who looked like a soccer mom, became known as a foreclosure escape artist.

Read the whole story: Bloomberg News

Comments

[davidwayneosedach]

Subprime buyers beware. There is always a way to capitalize on your stupidity.

[AN2009]

Is this compassionate conservatism speaking?

[formerprosecutor]

Bring on the Karma

[eladora]

This goes to the heart of the banks failures and their nonchalant attempts to help . I can give you example after example of homeowners who have called wells, citi, boa, only to be tossed around extension to extension explaining over and over --and over--then having to fill out paperwork that then gets lost when it gets back to some made up dept at these banks. I write Congress every day to tell them that these banks are lying right to their faces about their attempts to aid people. NOONE EVER LISTENS. Face it --the banks and the insurance companies run our govt. That is what leaves rooms for these lowlifes to succeed. They are everywhere and no matter who you report them to --state agencies, fed agencies, no one acts .
These swindlers--some arent former lenders. Some are attorneys who jumped in. but the banks and the false fronts they have put up have caused it.

[Nickesq]

Yes. When I saw those ads and inquired, it was clear that it was yet another money mill to suck it from the poor and nearly homeless. It is great to have an advocate twisting arms at a bank to get a loan modification that benefits the distressed buyer, since the bank will NEVER realize the principal balance. But what is happening is that after the $5000 up front is paid, the mod specialist processes a ton of paper, the bank makes an offer (probably unacceptable) and the mod group has "earned" its fee. Total BS. In addition, the mod group already knows what the various banks find acceptable, so they work within those parameters, requiring no effort whatsoever on their part. If you want to modify a loan, find out what is acceptable to the borrower, try to get the bank as close to that point as possible, then you can collect a fee.
By the way, what the hell is wrong with the people in this country that they think they have every right to run scams and call it a business. This is indeed some devilry.

[eggygen]

I guess the Brazilian President got part of it right!

[WilliamProc]

Shouldn't the headline read:

"Crooks start new scam, criminal unemployment drops!"

[AnnfromCA]

Fascinating story, but these companies are about all that are advertising in my radio area. It's constant, just as the subprime lenders were a couple of years ago.

It would seem that they shouldn't be on the air. Truth in advertising still exists, doesn't it?

[iamvalid]

Has me wondering a bit. Anyone know the annual budget for the Consumer Protection Agency?

[formerprosecutor]

The snakes are just everywhere. We need some "toothy" regulation QUICK.

A client , that has a mortagage with Wells Fargo is only 45 days behind, they have been that way for about 6 months. Wells Fargi calls them everyday,sometimes more.

The received, in themail a letter from "Hope Now". I took the letter home, and went on their website. My Macfee and Stopzilla alerted to "phishing". Turns out this company is a straw man for many mortgage lenders. Basically, they are tracking homeowners that might have problems and gathering information regarding who is inquiring about help. In my opinion this is operating to give the mortage companies a "heads up" to homeowners that maybe in trouble. Their offer of help is bascially serving the mortagage companies to pressure the homeowners even more; to "black list " them. Read the information for yourself at their website. In fact, one paragraph indicates that if you seek to alter your mortgage, they will foreclose.
Bad nasty people. The only help they offer is to the lenders.
Even more dispicable, the warm fuzzy of using the President's "hope " language.
We need to regulate mortgage agreements for residences; uniform, carved in stone loan agreements that have a uniform clear process for default. And federal usury rates. ALL mortgages should be guranteed by HUD; that is how the bailout money should have been spent. The overseas money is buying America at a dime on the dollar. While halfamillion familes in FL are homeless.

[iamvalid]

Where is Mack Bolan when you need him?

[lowgear]

Swindlers Work A New Angle: Rescue Scams

the msm finally read the 'stimulus bill'

congressional dems got busted

[clumberfeet]

Let me guess. The Democratic Congress forced them to become con artists or their victims the American workers and home owners are to blame.

[mamacat]

Tar and feathers, anyone?

[iamvalid]

Posse Comitatus anyone?

[formerprosecutor]

stop that; replacing evil with evil is nonsensical

[MadAppraiser]

Page 1 of the “Uniform Residential Appraisal Report Certification Page” in the Market Value Section states: “(2) BOTH PARTIES ARE WELL INFORMED OR WELL ADVISED, AND ACTING IN WHAT THEY CONSIDER THEIR BEST INTERESTS; (4) PAYMENT IS MADE IN TERMS OF CASH IN UNITED STATES DOLLARS OR IN TERMS OF FINANCIAL ARRANGEMENTS COMPARABLE THERETO; (5) THE PRICE REPRESENTS THE NORMAL CONSIDERATION FOR THE PROPERTY SOLD UNAFFECTED BY SPECIAL OR CREATIVE FINANCING OR SALES CONCESSIONS BY ANYONE ASSOCIATED WITH THE SALE.” Were sub prime mortgage borrowers well advised, and acting in their best interests when they entered sub prime mortgage instruments with exploding interest schedules? The appraisal market value determinants include explicit payment currency, and mention financing arrangements. The active, inflated sub prime real estate market was constructed upon creative financing, and speculation throughout American banking hierarchy! Have these mortgage institutions that participated in the sub prime mortgage disasters invalidated certified appraisal report criteria?

[formerprosecutor]

Yes.

[Peter007]

No they haven't. The reasons for the real estate bubble was not really known at the time it was occurring. Subprime mortgages have been around for decades. The amount of mortgages classified as subprime was larger than normal. That wasn't widely known at the time or considered a major factor in the bubble.
. Also, subprime means high risk. When property values are rising, that risk is mitigated. Therefore, the lower the risk of the collateral, the more risk a lender could take with a borrower.

The appraisal is based upon market conditions that are 1 year old up until the date of the appraisal. The appraisal doesn't predict future price movements even if the appraiser has an opinion. FNMA guidelines do not allow appraisers personal opinions of future price movements.­.

[formerprosecutor]

I haven't seen an appriasal based on that criteria outside of suburbs in the MidWest in years. Rural, recreation, and other property has been appraised using very creative math and comps.
Anything to make the sale.

[MadAppraiser]

“USPAP” compliant certified appraisal form reports all include certification forms that require participating appraiser signatures. These certified appraisal forms normally are placed in the rear section of all Fannie Mae, and Freddie Mac appraisal form reports. The multitude of appraisal forms includes vacant land, manufactured housing, residential, and income real property.

The respective mortgage lender or agency that select the appraiser should be required to sign these appraisal certification forms specifying that everyone involved in the mortgage process is compliant with “USPAP” criteria. Competent appraiser’s butts have been in the wind too long by themselves in terms of mortgage lender corruption!!!

[lochnessmonster]

I received a call this week saying that the caller knew that I was in dire financial trouble (we are not) and this would be my chance to get all those creditors off my back. All I'd have to do is call them back and they would set-up a new mortgage for me. Anyone else hear of this scam?

[formerprosecutor]

Whenever you apply for credit, the "lender" sells your info; the fish for people that are borrowing to pay other debt.
Check your credit reports; I bet you find some inquiries from co. you have never heard of.

[Peter007]

It doesn't sound like a scam. It looks like a mass mailing. I get spam emails everyday and my mailbox is always filled with sales flyer's.

[mumrock]

Then there are the credit card rescue services that you hear every 10 minutes on the radio. How many months will it take the news services to expose these companies? And how many people will have been suckered in the meantime?

[clumberfeet]

Secrets the credit card companies don't want you to know?

[formerprosecutor]

The vast majority of the "for profit" credit "counseling" companies are owned by or the lenders have a financial interst in, these companies.

[SamKnause]

Our government won't acknowledge that a great deal of this mess is due to lost jobs caused by NAFTA.
Our government won't acknowledge that a lot of people did put a down payment on their homes.
Our government won't acknowledge that banks and mortgage companies are out for profit only and their interest rates range from unfair to outright theft.
Our government won't acknowledge that they are rewarding these companies with bailouts instead of bailing out the working class American.
Our government won't acknowledge that a lot of these contracts were falsified by the banks and mortgage companies after they had already been signed by the home buyers.
Our government won't acknowledge that because of the laws that they passed they caused this mess.
Our government won't acknowledge that government always sides for the good of the corporations and against we the people.
Our government won't acknowledge that they have the power to stop these foreclosures.
Our government won't acknowledge that they have been bought and bribed by lobbyist to vote against the good of, we the people.
Our government won't acknowledge that the SEC didn't due the job that it was paid to do.
All I hear is it is our fault!!!!

The way I see it, it is our Governments fault. They are to blame. They sold we the people out for their own self interest to attain wealth and power.

[KarvilMarz]

Governments are kind of like bananas. When you keep them around for to long, they go rotten and need to be thrown out.

[iamvalid]

Posse Comitatus anyone?

[formerprosecutor]

I tend to agree with most of what you stated. We have been the means to an end for the wealthy . As we all now see, their behavior did not benefit society, or the "whole". Their behavior did not rasie the quality of life, nor GNP, nor raise the standard of living, nor encourage bootstrappers, nor serve to make the next generation a degree better than the last. The policies of the last 8 years have only beneifted the wealthy and they did not return the profit to America, in any form.