LOAN MODIFICATION & MASS JOINDER LAWSUIT SCAMS
Posted on Apr 9, 2011 1:24pm PDT
You don’t need to read this article to learn that, over the last three years, many California homeowners have fallen victim to scams involving loan modification scams, foreclosure rescue, and “mass joinder” plaintiff lawsuits. The desperation created by our country’s economic collapse has given predators the opportunity to con homeowners out of their hard-earned money with false hopes of saving their family home.
While most real estate and legal professionals are noble and take pride in helping people through difficult times, there remain that bottom few who give a bad name to these industries. Some of these con artists honed their skills during the real estate bubble when they peddled the toxic loans. When the mortgage industry imploded, these and unscrupulous brokers and loan officers found themselves suddenly unable to earn tens of thousands of dollars each month. They now use their experience at high pressure boiler room sales techniques to sell loan modifications and sign up clients for law firms.
These swindlers advertise themselves as foreclosure prevention experts who use insider knowledge of the mortgage business to obtain loan modifications which cut loan balances, obtain low fixed interest rates for the life of the loan, and immediately stop any foreclosure action.
These charlatans align themselves with unethical and inexperienced attorneys who pay them generous referral fees for signing up clients attorneys. They get these clients to pay thousands of dollars upfront to join mass joinder plaintiff lawsuits without ever meeting an attorney. They get these people to pay by guarantying that these lawsuits will be successful. They tell these clients that no mortgage payments are to be made during the several years that it will take for the lawsuit to wind through the court system. They promise balance reductions to below market value. They give their word that the attorneys have already won similar cases and have saved hundreds of family homes through these lawsuits. They are quite convincing as they explain how lenders are afraid of the negative publicity that these mass joinder plaintiff lawsuits generate.
Eager to save their home and lured by the idea of gaining power over the lender that has been victimizing them for years, these people pay thousands of dollars without truly understanding what they are getting, and more importantly, what they are not getting. The truly disturbing result of these scams is that the legitimate real estate and legal professionals are falsely accused of being just as crooked as the actual crooks. With so many scam artists in the field, people quickly start to believe that there are no honest real estate professionals or lawyers. This is a grave mistake that prevents people who really need help from seeking such help, and a mistake that lets the lenders continue to abuse the public without any fear of accountability.
You should never pay money to any attorney that you do not meet in person. You should never pay money to a non-attorney for legal services. While a money-back guaranty is not a sign of dishonesty, you should not trust anyone who promises absolute success in the areas of loan modification or litigation.
At Fransen & Molinaro, LLP one of our experienced attorneys meets, personally and one on one, with every client we represent. Our attorneys will explain not only all the benefits you will get by hiring us, but also explain what will not happen when you hire us. If we do not feel that we can save your home, we will tell you so. We do not tell our clients what to do. We present options, often ones that our clients did not know existed. We help clients set achievable goals, and then help our clients to achieve those goals. Oh, and yes, we do represent clients who have been scammed by real estate professionals and attorneys.
** This post and all others I make on Internet are for informational purposes only. None of the information or materials I post are legal advice. Nothing I post as comments, answers, or other communications should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship. While I try to be accurate, I do not guarantee accuracy.