Foreclosure Hero: Man Pesters Executives, Saves Friend's House

Lee Castillo, 34, is an IT systems engineer with zero experience in the mortgage industry.  But when he found out that his friend had been scammed by a loan modification company and was a week away from losing his home, Castillo decided to get involved.
 
"He had been trying to work with CitiMortgage and OneWest bank to get a loan modification, and they made it extremely difficult for him, especially since English was not his first language," Castillo told HuffPost. "He came to me and said he needed to find a place to rent because the bank kept saying they didn't receive all the documents they needed and that they were gonna foreclose. So I said, let me look into this for you and see what's going on."

Castillo's friend in need, Julio Salazar, says he started losing income from his Falls Church, Va., hair-cutting business last March due to the recession.  When he could no longer afford his $1,700 monthly mortgage payments, he sought the help of Friendly Financial Services, a loan modification "specialist" in Miami.

The company referred Salazar's case to a mortgage lawyer named Robert Rosenwasser, who charged Salazar $2,300 up front and then failed to send in all the applicable financial materials to OneWest bank.

Homeowners are never supposed to pay upfront for loan modifications. Charging money upfront is illegal in Florida, and a federal ban on collecting upfront fees took effect Jan. 31. Frank Dorman, a spokesman for the Federal Trade Commission, told HuffPost that loan modification scams have increased with the recession to take advantage of increased foreclosure.

"We advise people to avoid any company or individual that requires a fee in advance, guarantees to stop a foreclosure or modify a loan, or advises the homeowner to stop paying the mortgage company," he said. "Many of the complaints received by the FTC include not being able to contact the company after paying for mortgage refinance services, not being able to get their money back, and not receiving proper help from the company after paying for services."

Salazar received no help after paying Rosenwasser the $2,300 fee.

"I got a foreclosure letter after three months," Salazar, 40, told HuffPost. "They took my money and did nothing."

Rosenwasser told HuffPost his employee did send in all the appropriate forms on Salazar's behalf and that Salazar must have had a "false impression of what was going on with his file," but OneWest bank confirmed that it did not receive a complete financial package from Rosenwasser and that he did not respond to their follow-up requests for more documents.

"Our loss mitigation services are free of charge," said David Rodriguez, a OneWest executive who worked on Salazar's case. "Anyone or any company asking for money up-front should be thoroughly examined before a customer agrees to pay for such services."

When Salazar said he was ready to give up and walk away from his mortgage, Castillo convinced him not to and promised to personally stop the foreclosure from happening. He became authorized to work on his friend's behalf, sent OneWest bank a complete financial package just weeks before the sale date, and started digging up the contact information of various bank executives to rally them around his cause.

"I met with the director at OneWest, I went to the president of Freddie Mac, the lender, and I even got Congressman Gerry Connolly's office involved," he told HuffPost. "You can get to these people in the executive offices. You have to be smart enough to navigate the web, but you can get ahold of them and pester the hell out of them until they do something. I said, 'Look, if you fix this and get this through, then I don't have to bother you anymore, but if you don't then you're gonna hear from me every day until we get this resolved.'"

It was a smart tactic: Banks are notoriously uncooperative with homeowners seeking modifications. Homeowners typically never speak to the same person twice when they call their banks.

One week before the sale date on Salazar's house, OneWest agreed to a permanent loan modification -- from $1,700 a month down to $850 -- and stopped the foreclosure.

Salazar says he immediately called Rosenwasser to ask for his money back, but the lawyer refused.

"I called them when I found out Lee was able to help me and I told them, 'You didn't do nothing. Give me half back,'" he said. "And they said no, because I broke the rules by having Lee call the bank. I thought that was funny -- I broke the rules by trying to save my house."

Despite having navigated a notoriously frustrating process and rescued his friend's home within weeks, Castillo says he is no hero -- he just did what any neighbor should do.
 
"I'm not a religious person, but I am very fortunate to have a really good job, and I think it's my duty as a human being, when another human being is going through a hard time, I need to step up to the plate and help," he said. "I think if we as Americans or neighbors or friends took the time to get to know someone and take on someone's cause, well, imagine if everybody did that?"

Comments

[Claireify]

07:46 PM on 03/08/2011

Hats off to the foreclosure hero! Saving one home at a time.

Now, for a dose of reality: Claireify Law #35-"Nothing of importance happens until enough people in the same situation, in the same place, are affected by the same problem at the same time." To wit, Egypt, Tunisia, Wisconsin....

Americans don't realize how much power they have. They are running on fear. If every American worker had the cajones to call in sick on the same day (and actually stay at home) to protest the way corporations and banks are railroading the country, they might be counted as heroes too. But they would probably would lose their jobs, or at the very least, be blacklisted by their employers, so it's not going to happen. Ergo, nothing else happens either. If it did, prices at the pumps might go down a dollar or two as well. Imagine all the empty highways. What a sight. What a vision. What a "not-happening."

[robert v rosenwasser]

05:41 AM on 02/24/2011

How would Laura Basset feel if she thoroughly researched a story, documented everything, and then a national newspaper picked up the story and someone wrote an article about her that went on the web that says fraudulent reporter invents a fictional account of real events to sell copy. If she knew that she researched and documented everything thoroughly, it would be an injustice to her. Well that is the injustice she did to me. We have proof we did our job yet she still wrote a fictional account just to sell copy.

[robert v rosenwasser]

05:36 AM on 02/24/2011

I have written emails to Laura Basset asking her to prove there was a sale date when her friend intervened, I have heard no proof from her or Castillo, I have asked her to prove that the friend was helped in weeks instead of 7 months. I have heard no proof from her or Castillo. I asked her to refute the documentation I submitted below that the file was in review when we were taken off the case and all foreclosure activity ceased, I have heard no proof from her or Castillo. It may break everybody's feel good bubble but this story is a fictionalized account to evoke an emotional response, but unlike other fictions the names were not changed, and the false villanization of myself as an attorney is a consequence of the reporters and Mr Castillo's fasle portrayal of facts and events and timelines.

[robert v rosenwasser]

09:54 AM on 02/23/2011

every time there is a stab at the attorney the fans gather round and applaud. when clients come to my office after having sent in every document and follow up document for a year and then get denied by the bank when they fully cooperated they turn to me because we have experience in loan mods, Mr Castillo said himself that the client could not make progress with the bank because of a language barrier (even thought the bank had a Spanish speaking dept) If you want to save your house and get a loan mod after missing payments are you going to trust a friend who has as little experience as you or an attorney who has been doing this since before the Obama plan ever existed. the people may not admit it after they bashed the attorney but they will come to me with their head down and their sunglasses on while they plead to have me accomplish what they tried in vain to do themselves. People get themselves loan mods with great difficulties but do they get the best mod they could have gotten, I know the best mod they can get and that is what I try to get for my clients, it is often the client intervention, the client putting their foot in their mouth that sabotages our effort. That is why it says in our contract client intervention voids our gaurantee. Read the facts below.

[robert v rosenwasser]

09:33 AM on 02/23/2011

for all of those people who were quick to judge based on the reporters false account of events I have documented the true of account of what happened, I am looking forward to a retraction and apology from Laura Basset reporter, and Mr Castillo 15 minute Hero, and those who had their emotions tugged by false reporting, remember that a wise person is slow to judge and a good judge hears the facts from both sides before rendering judgement, below, the world has the facts of this case, the real story, before one does something that can malign someone on a national blog, they should be cautious because words are spears and daggers and do injure.

[robert v rosenwasser]

09:10 AM on 02/23/2011

the program on which the below notes were kept cost the attorney $15,000 we take bank processors ID so if we have to go to court on behalf of our client we have documentation of who we spoke to and when we spoke to them, because banks lie and we document everything, in this case both the reporter and Mr. Castillo lied, the world is so quick to judge and accuse, I have the facts below, instead of saying I should be banned from practicing law it would be appropriate for all who had their emotions played at my expense that Laura Basset should not be able to report, and the Huffington Post should be relegated from a legitamate news reporting publication to a tabloid publication with no credibility, what goes around comes around.

[robert v rosenwasser]

08:59 AM on 02/23/2011

Please see attorney notes on the file, who is the bad guy? attorney or the reporter for fabricating a fictional account, and Mr Castillo for acquiescing to false reporting:
Client Diary
06/28/10 11:08 AM
LM11 IN REVIEW FOR PERMANENT,FOLLOW UP
Client Diary
07/08/10 11:08 AM
I called Indymac and spoke to Madeline(Rep ID:91H) June 7th they received the full complete package and since then the loan is active under review for workoutand no docs needed and loan active under review. I am going to call again by July 22nd/10 ut program in loan modification department. Foreclosure proceding has been place on hold.

Client Diary
07/08/10 11:16 AM
I called Julio Salazar and explained that the modification continue under review
Client Diary
07/22/10 09:43 AM
Angela ID:30Q Loss Mitigation department says borrower through 3d party called lender on the July 16th and he set up himself a repayment plan, reason why the pull his file out for the review for making home affordable program or modification review. I send client close letter
Client Diary
07/30/10 01:57 PM
CLOSED




02/18/11 12:36 PM
Gail from Customer Service and Modification Dept ID 0 1 M Feb 16 2011 the file went to closer for a modification because they got the final modification signed, original documents sent March 2010, More Docs in May July and August, tax returns pay stub, asked for updated information in July and Aug 2011

[robert v rosenwasser]

08:27 AM on 02/23/2011

The opening of the story says that when Mr Castillo found out that his friend Salazar had been scammed by a loan mod company and that his friend was a week away from losing his property, he got involved. The end of the story says that he helped his friend in weeks by pestering bank officials. The notes in our file read as follows July 8th Bank confirmed they received a financial pkg, and that all foreclosure activity ceased while file is in review, no documents needed at this time, check back in 2 weeks. Mr Salazar was called and updated on the status July 8th. July 22 exactly 2 weeks later we called the bank, the bank said, Mr Salazar authorized Mr Castillo on the file July 16th and we did not have authority to work on the file. We closed the file on July 22. In February 2011 the article came out that Mr Castillo helped his friend in weeks. He did not get a loan mod until 7 months after we got the file in review. Bank confirmed foreclosure activity ceased on July 8th. July16, there was no judgement, no sale date, no foreclosure activity The bank confirmed they received the financial pkg NO RISK OF LOSING HOUSE IN A WEEK as is stated in opening paragraph. The entire impression the story leaves is false, who is the bad guy and the lier, the reporter, Mr Castillo, the truth will set you free. Reporters should be truthful

[lafaycoco]

08:52 PM on 03/04/2011

And "loan modifiers" should fix the loans so others don't have to, and give the money back when they can't, won't, or are scamming! Boy you sure can talk a loooong pathetic defensive game though. Why don't you spare us all and write a book so we don't have to read all these excuses?
Good for you Mr Castillo for helping your friend. I saw warnings about these scams so was not caught. Mr. Salazar is blessed to have a friend like you!

[robert v rosenwasser]

12:31 PM on 03/06/2011

Mr. Castillo delayed the process for loan mod for his friend. Sorry Charlie, but he took seven months after the file was in final review by the law office. He went in like a bull in the china shop and broke what was already accomplished and started from scratch. The road to you no where was paved on good intentions. Not only did Mr. Castillo not help Mr Salazar, he lied about the time period and the degree of urgency, not so heroic.

[robert v rosenwasser]

01:53 AM on 02/23/2011

can somebody look up the case against Mr. Salazar in Virginia and confirm that the sale date of the property was a week away when Mr. Salazar got his loan mod in February 2011, that is what the reporter reported, does the huffington post have an editing department that seeks truthful documentation from its reporters. Can Mr. Salazar and Mr Castillo have the decency to confirm what the bank already confirmed, that the permanent loan mod occurred in Feb 2011 while Mr. Castillo's heroic intervention began exactly July 16, 2010. Can Laura Basset issue a retraction that Mr. Castillo helped his friend in weeks and stopped an imminent sale when in fact upon Mr. Castillo's intervention there was no sale date, and it took him 7 months. It is very interesting when the public hears the rest of the story. I have received hate mail, and phone calls from the false reporting of Laura Basset, she should have the decency to retract.

[robert v rosenwasser]

01:09 AM on 02/23/2011

As lawyers say, if you have the truth argue the truth, if you have the facts argue the facts, if you have neither, bang the table and hurl insults. Mr Castillo has done nothing about arguing the truth or the facts but he has hurled alot of insults. What does that tell you.

[robert v rosenwasser]

01:02 AM on 02/23/2011

I as well as all other out of state attorney's are prevented from doing loan mods in Maine. I have abided by the ban, and the marketing company who solicited out of state clients and referred them to me is out of business. Helping people is noble and you are be commended, but false negative communication about another, and misinformation about your help to aggrandize yourself is not commendable Mr 7 month loan mod. I hope you enjoy your 15 minutes of fame, why don't you confirm the truths about my corrections in my comments instead of further trying to defame me Mr Castillo. Stopped a sale, helped him in weeks, you know as well as I do that is total fiction.

[Lee Castillo]

11:23 PM on 02/22/2011

Robert Rosenwasser you sir are no gentleman. And you are a disgrace to good attorneys out there. The state of Maine bared you from doing business there. Your days of deception are coming to a close.

http://www.maine.gov/tools/whatsnew/index.php?topic=CCR-LegalDocs&id=130838&v=Default

[Marta M Miller]

04:24 PM on 03/10/2011

You're right about Mr Rosenwasser. He is the one I think of when I hear lawyer jokes. He should be ashamed. He's got excuses for everything. I'd been out of work for several months, hadn't found another job, and unemployment was ending. I told them that I had 3 months of unemployment left and what was happening with my case. One of his assistants said they couldn't get my mortgage company to work with Mr Rosenwasser. She was closing my case and I needed to send something in writing to get my refund. I sent the refund request to Mr Rosenwasser and was quickly told it was denied due to a change in income. I told them that the notice that my unemployment was ending was sent in error and nothing was changing. I had done nothing to void our contract. That was June of 2010. Still no word back from him or any of his employees. I called several times, left voice mails, and messages. No reply from him. I then called several times and each time we suspiciously got disconnected. Here it is nine months later and still not a word. Even after I filed a complaint with the Florida Bar, they gave him 14 days to respond and NOTHING. He didn't even respond to them with a denial. I guess that says it all. Question, how many others are out there that paid him for his help and all he did was take the money and run?

[hastrow]

04:29 PM on 02/22/2011

The last few comments by lawyers mind one of Thomas Jefferson's observation, that "It is the business of a lawyer to question everything, produce nothing, and bill by the hour." Though of course nowadays they like to get a retainer in advance and then produce nothing.

[Robert Rosenwasser]

09:23 PM on 02/22/2011

If the above person knew how many people we kept in their house for over 2 years although they paid no tax insurance principle or interest, and how many people we got loan mods of 2% interest saving them from a 7% loan $15,000 a year on a $300,000 loan he would not say we do nothing. I have helped hundreds of homeowners, I do an AM radio show in Miami daily coaching people to avoid scams and common errors as first time home purchasers, I give a free consultation to any homepurchaser and review their contract for free, I dissuade people who want loan mods to do short sales when their loan value is several times higher than their property value, and I give clients the same advice that I would give to my brother or family member. Yet Laura Basset sought to criminalize the attorney. When someone gets a catastrophic injury from another's negligence and the attorney gets them compensation they will thank G-d there are good attorneys in the world, when a client is days away from a courthouse sale and I stop the sale and get a negotiated settlement from the bank, they thank G-d there are good attorneys in the world who know their craft.

[Robert Rosenwasser]

03:50 PM on 02/22/2011

Mr Castillo said he pestered the bank every day. It took him 7 months to get the mod. If he pestered the bank everyday for 7 months I would say that would be worth a $2500 fee. He accomplished no permanent mod in weeks, unless you define weeks as 30 weeks as weeks instead of less than a month as most people do. The reporter would do well reporting tabloid stories where facts and accuracy are not associated with good reporting.