Is mortgage litigation a scam?

Asked by kirkaja, Los Gatos, CA Fri Sep 28, 2012

I'm hearing conflicting things. I'm currently underwater with an Indymac /One West mortgage call option arm that I'm sure has many compliance violations. I want to stay in my house of 20 years but I've been turned down for loan modifications, with the same delaying tactics, lost paperwork, false fax numbers, and their unwilling to negotiate at all. I'm told it is possible to obtain a 2% loan if I threaten litigation with my lender. Most firms require a rather hefty retainer fee, and considerable monthly ongoing fees for periods up to a yearIs there really a chance of sucess going this route?

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5
The Medford…, Agent, Fremont, CA
Fri Sep 28, 2012
I’ve never heard of single case where a homeowner managed to do it on their own. However, there are a few reputable companies out there – we’ve actually seen so very successful mods. You have to be SO careful about who your choose – as you’ve seen, there are SO many scams out there.
1 vote
Stephen Whit…, Agent, San Jose, CA
Wed Aug 27, 2014
I would be happy to refer you to a local reputable real estate attorney that can answer all of your questions and take care of this.
0 votes
That could be a conflict of interest. Check RESPA and
AfBA.

Don Lucky
Home Information Pack
Consumer Centric Information for
First-Time Home Buyers and Sellers
hipquik.com
Flag Fri Oct 17, 2014
Leili Mortaz, Agent, Campbell, CA
Sat Jun 1, 2013
Loan Modifications with up-front fees is a scam and is against the law. You should contact Depart of Housing and Urban Development (HUD.GOV) for them to assign you a counselor to help you.

We have worked with IndyMac and they are a very tough when it comes to negotiations. in fact, they are currently forcing ONE of our clients to MISS 2 payments (60 days late) and damage their credit before IndyMac considers their Short Sale application.

Another option you can try if you feel you are not being treated fairly is to file a complaint with the Consumer Finance Protection Bureau which is the federal agency created by the 2010 Financial Reform Act of Obama. They have just enough TEETH to get you file escalated to the a Manager at IndyMac who should pay attention to your file.

But under no circumstances you should pay ANY fee for Loan Modification. Some of the scammers are very clever and try to bundle a DVD, CD with their offer to skirt the law that the upfront FEE was for product costs and not for Negotiations.

We have documented our work with Indymac in this blog post which might give you some more ideas as well.

http://davidmortaz.com/2013/05/06/offensive-banks-short-sale…
0 votes
Terri Vellios, Agent, Campbell, CA
Fri Sep 28, 2012
I would not pay anyone for this. There are a lot of scammers out there and no guarantee of success.

I don't know what type of modifications lenders are offering. If you have not met with a Real Estate Attorney it would be sound advice to invest in an hour consultation to determine what options are available to you.

David Hammerslough 408-261-4252 is one place to start.

All the best to you.
Web Reference:  http://www.terrivellios.com
0 votes
Norman Aless…, Agent, San Jose, CA
Fri Sep 28, 2012
I would NOT pay a dime of retainer fees, do not go that route there are gov web sites for people who are under water google it then see what they recommend you do. This is a FREE service, do NOT pay for any litigation fees it goes on for months and months and I have not heard of any results from it other than you will out a lot of money.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
0 votes
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