California Loans News

The recession has caused the worms to come crawling out of the woodworks, and some of the worst are those that prey on people who are already suffering. California loan modification schemes are some of the most despicable of them all, and “Operation Loan Lies” has worked to bring down some of these frauds.

July 7, 2009 saw “Operation Loan Lies” clamp down on fraudulent foreclosure relief organizations like H.E. Servicing, Inc. This effort was spearheaded by Brown, the State of Missouri and the Federal trade commission, charging US Foreclosure Relief Corp., Adrian Pomery, Cesar Lopez and George Escalante. They have been operating a number of fraudulent foreclosure relief organizations, H.E. Servicing, Inc. among them.

These institutions charge ridiculous fees of thousands of dollars, with $2,500 being the standard upfront payment for California loan modification schemes. The ironic thing is that about 80% of their clientele are actually outside the state of California.

Brown has revealed the tactics that these frauds use to get to your money:

The first and foremost thing you should be aware of is their initiative to contact you. If you receive a phone call from an agent who is aware of your foreclosure problem, put down the phone and cut the conversation then and there. Extending the conversation will only give these frauds the opportunity to convince you to avail of their too-good-to-be-true schemes. The only real thing you can do to solve your problem is to call your bank or your lender to set things straight and to negotiate what can be done.

If you are currently working with a California loan modification counselor, never sign over any property to them. You are also not supposed to give money until a) a written contract has been signed and b) the services of the loan modification counselor have been availed of.

If you believe you have been a victim of loan modification fraud, you can contact the Attorney General Public’s Inquiry unit here.

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