Beware of Modification Scams: Harris Nails Another One Actions

Editor’s Comment: Don’t give anybody money unless you have checked them out. I’m not saying they must have a six year history in this like I do, but get some references and don’t part with your money until you understand exactly what they are planning to do and why it will or has a likelihood of working.

Modifications, for the most part, only work if the homeowner is agressive rather than timid and passive. By submitting a modification proposal along with an expert analysis and support for showing that the modification proposal is far more reasonable than the proceeds in foreclosure, homeowners can go to court and simply allege that the servicers/owners breached their statutory duty to “consider” modification proposals.

If you take one that they offer, then they are COUNTING ON THE FUTURE FORECLOSURE OF YOUR HOME. It’s what they need in order to prove to the investors who funded this mess that they lost money. Without the foreclosure, the investors are going to start getting increasingly involved and when they do (and I predict they will) they are going to hit the ceiling. When large institutional investors and pension funds start showing a patternof conduct violating the laws and rules of the “game” then maybe we will see the prosecutions that we saw in the savings and loan scandals.

Attorney General Kamala D. Harris Announces Judgment in National Multi-Million Dollar Mortgage Scam
LOS ANGELES — Attorney General Kamala D. Harris today announced defendants who ran a national loan modification scam were ordered to pay more than $4 million in penalties and restitution, including $2 million to consumers who were falsely promised modifications of their mortgage loans.
More than 1,000 customers paid more than $2 million for loan modification services to Statewide Financial Group, Inc., which did business as US Homeowners Assistance and Webeatallrates.com, and was based in Orange County. In July 2009, the Attorney General’s office shut down the business, which had been in operation since January 2008.
“These defendants took advantage of vulnerable people in extremely difficult circumstances, including many who faced imminent loss of their homes,” said Attorney General Harris. “The significant financial penalties imposed by the court let scammers know that severe consequences will flow to those who defraud California consumers.”
The Orange County Superior Court ordered that every US Homeowners Assistance loan modification customer should receive a full refund upon request. The defendants were also permanently enjoined from engaging in the conduct that led to the lawsuit and were ordered to pay $2 million in civil penalties. It is unclear, however, how much money will be recovered and available to pay refunds or penalties.
The prosecution of this action took nearly three years, culminating in a multi-week bench trial in March 2012. The business’ owners, Zulmai Nazarzai and Hakimullah Sarpas and Fasela Sheren (who went by the name Sharon Fasela), were all found liable for violating California’s Unfair Competition Law and False Advertising Law.
In a separate proceeding in late 2010, Attorney General Harris successfully prosecuted Nazarzai for contempt of court for his refusal to turn over $360,000 unlawfully taken by defendants as ordered by the court. He has been incarcerated in the Orange County jail since December 2010 because of his continued refusal to comply with the court’s order.
Attorney General Harris formed the Mortgage Fraud Strike Force in May 2011 to investigate and prosecute crimes and wrong-doing related to mortgages, foreclosures, and real estate. The prosecution of this action is part of Attorney General Harris’ ongoing efforts to protect homeowners, which also includes the national mortgage settlement and the California Homeowner Bill of Rights.
Copies of the court’s judgment and statement of decision are attached to the online version of this release at http://www.oag.ca.gov.

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You may view the full account of this posting, including possible attachments, in the News & Alerts section of our website at: http://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-announces-judgment-national-multi-million

23 Responses

  1. The loan mods were a scam, If you were already in default it was just a scam to prolong the process and collect more fees while the cleared the pipes of the existing FC properties. If you were not in default and just seeking info on the loan mod programs to see if they would benifit you… they had you fill out the loan mod request, told you to default to get quicker service. While many took their advice others continued their reg payments. Once you requested a loan mod the servicer automaticly put your account into default (you just saved them the trouble of doing it for you). They add on their fees, collect on the bets they made that you would default, and while you were argueing about fees they were duel tracking you right to a Fraudulent and Wrongful FC . They were swimming so deep in the dough … they didnt think about how they were going to clean the sh’t splattered on titles of the homeowners who dared to challange their actions,denied default, and had the records to prove it. Makes for Instesting Litigation. ……. Make no Admissions and Sign Nothing …..

  2. CABAL you’r up against: http://www.youtube.com/watch?v=cNk9o1_N57U

  3. Right again, Martha. I am working on letting it go. Even though I lost the lawsuit “battle,” I won the foreclosure “war.” I know that. We have counted the ways we actually beat them. The only reason I have any desire left to fight over it is because as my man Alex Jones likes to say, “Resistance is victory.” I want to fight simply because they don’t want me to fight. They want me to be overwhelmed. But guess what–I’m just “whelmed.”

    I think we all have to fight these bastards–peacefully–any and every way we can. Never let them think they have the upper hand, because they don’t. We know every last bit of everything they’re doing is absolute fraud, make-believe, rubbish. They only have as much power over us as we let them have. And if and when I do sue them again (probably won’t, but never say never), this time there will be no quarter and I will salt the earth (you know, in a figurative sense).

  4. @zurenarrh, I was not sure you would not take that wrong, (glad you didn’t) and I too, am all for fighting, that’s for sure, but some battles you will not win, and to keep going out there in the field, for them to hammer on you, and you know it will…well..

    And, you said you did not appeal, and I too understand your reason, except the system views this.. as you conceding, and thats BS I know..as you were just exhausted, but it it what it is.

    You will never find satisfaction from this, except to know you learned a great lesson, and that maybe you can pass it on to the next generation.

    You did not appeal, and you willingly left the home…so it’s over pretty much. And that’s the bad thing about the appeal system, is that you gotta do it, or your conceding, and if you do, then it just drags on and on, until there is nothing left of you. Emotions, money, happiness or hope.

    Do not let them win. Let it go, and find the ways that you came out ahead. Once you say it’s over, and you stop this “thought” of suing again on whatever, you will be free.
    You can still be a fighter, be a patriot…. but it won’t eat you up at night, thinking that it’s about you anymore. Its just a house. It’s not your life.

    What will they win, when nothing is left except ashes?

  5. Good points, Martha. My wife is sick of it. I am too. But if I learned anything from the lawsuit, it’s that I am a fighter. I don’t give up easily, but at the same time, I recognize the futility of another lawsuit. The courts are captured and enforce the law only us little people. I get it–but I loathe it.

  6. @zurenarrh, said

    “IF it goes down. The other reason I want to be at the sale is so that if they try to sue me for a deficiency, I will know what happened at the sale.”
    **********
    I hate to take the other side here, and am not really….but I understand the pain and anger you feel at the situation first hand, and it tears you apart, so you should try to let it go, because you already left the house. They did not force you to leave right?
    Don’t let it eat you up, forget the sale, and just hope they don’t file a Def, on you, or if they do talk to a tax lawyer about the situation.

    You walked away it seems, and I don’t mean from paying, but you left the house, and say you don’t live there anymore, so nothing at the sale is going to change anything it seems, and they will do a credit bid probably, like 99% and this will not change anything. They will either do a def on you, or they won’t and its over.

    If your assets are less then your debt, why worry? I would avoid court at all costs, and find a good tax lawyer.

    That said, I wonder at what point the IRS has a lien on the home, I mean it’s been in your name all along, and if you owed any taxes last year or the past, I would think the IRS has the first hand out at any money from the sale, like they get paid first, and any left goes down the line… A tax lawyer would be more helpful then dragging all that pain up by going to the rigged auction I think.
    You were in court 2.5 years and your still thinking about a lawsuit?
    Haven’t you had enough torment!

  7. Another CHASE headache :

    http://www.courthousenews.com/2012/07/26/JPMorganCA.pdf

  8. Martha,
    Thanks for your comments. I sued and lost. Didn’t appeal because the courts are useless. The judge didn’t give them the house, and he didn’t make me pay their attorney’s fees. The result was basically this: I got nothing and all they got was the judge’s opinion that Fannie Mae can foreclose. The case went on for 2.5 years, only to bring us back to the status quo ante.

    I did and do have fraud in my paperwork and documents, but the judge didn’t care, which I expected. I don’t live in the house or even the state anymore. I don’t care about the house. I just want them to sell it so I can go to the sale and catch them in more chicanery, after which I will sue them again (even though the courts are useless)! Or maybe I won’t sue them–it depends on how the sale goes down, IF it goes down. The other reason I want to be at the sale is so that if they try to sue me for a deficiency, I will know what happened at the sale.

    So come on, Recontrust–let’s dance!

  9. I am finding documents for a Los Angeles property, not recorded in Los Angeles County, but in Ventura County, and there is a law in Cali, can’t remember which code, that says you can record property documents in any county, and its valid.

    @zurenarrh, If I were you I would consider yourself lucky if they sell it, as you probably owe more then its worth. I don’t want to say I am on the “Dark Side” as I am pro-homeowner, and anti-fraud, except most people are getting emotionally hung up on on “the house”, and if Joe Bob bought a house for $300K in 2007, and paid 50k down, and now its worth $150K, he is sitting there ready to walk for sure, (if they all -the underwaters-are not in this place about right now)

    So Joe Bob already knows he’s screwed, but what if someone came up and said, “hey, I will buy your house, and you will walk away with $50K” sure your credit is shot, but thats not so bad, you’ll survive, meanwhile, the bank-or whoever gets this house with a toxic title, and you got some cash. You can rent the exact same house for much less then the payments in almost 100% of the suburban market.

    Most of those in foreclosure (not counting the seniors who are in worse shape)are not looking at the bright-side, and they don’t make any payments for a year, and that’s cash.
    Think of it as having just sold the house, and save all your money, and wait until the sheriff forces you out. Pack your stuff, put excess in storage that you cannot live without, donate unimportant items, and live lightly, being prepared to move fast. It can be freeing to do this.

    If the sell it and UD you, forcing you out, that title is going to be toxic no matter what. It’s contaminated by the fact you were forced out.

    If they make you an offer, think very hard about it,. as the stress of all this is not going to be worth it, that I can guarantee you.

    As for lawsuits, unless you have massive fraud done to you ( in my case) What are you going to sue for? Pro per is the worst possible situation and its a living hell, no one should do this, and especially if you don’t have a real case of fraud.

    A fool and his money are soon parted, and we all were fooled.

  10. @ zurenarrh & Kathy: all is needed is recording a Trustees Deed Upon Sale which they give to your county sheriff, who is also on their bribe list (together with county recorder/DA/JUDGES) and you’r out …

  11. @ zurenarrh, … its hard to sell something you dont own. That goes for Banks and Homeowners alike ……..

  12. Waiting for Recontrust to schedule my property for an auction. Have checked their website every day for months, and they haven’t scheduled it yet. Noticed something, though–in all the counties in my state, they only listed sales scheduled through the end of September. What makes that strange is that in the several months I have been watching their site, the listings were posted well in advance of the sales, such that if Recontrust were planning on conducting sales past September 2009, such sales would be listed now, in late July. Probably nothing significant, but strikes me as odd. Anybody else noticed this and/or have any idea what’s going on here?

  13. Contact your senator immediately and tell to vote yes or else. That may be the only chance we get in a long time.

    GET ON THE PHONE! SEND AN E-MAIL! MOVE YOUR BUTT!!! Watch C-Span right now: it’s insane! China is moving in and we have Geithner making excuses!!!

    House OKs ‘Audit The Fed’ Bill
    By Benny Martinez|7/25/2012 3:36 PM

    The House on Wednesday overwhelmingly approved legislation that would allow for a full audit of the Federal Reserve.

    The 327-98 vote defeated a two-thirds majority vote required under suspension of the House rules and represents a rare legislative win for the bill’s author Rep. Ron Paul (R-Texas), a longtime opponent of the Federal Reserve.

    The Federal Reserve Transparency Act, H.R. 459, gives Congress the authority to dig deeper into the Fed’s monetary decisions. The current rule allows the Government Accountability Office to audit the Fed with the exception of its monetary policy decisions.

    “The bill essentially removes the prohibitions against a full audit,” Paul said on the House floor. “We should know what kind of transactions there are.”

    Some of the bill’s biggest opponents argued that the Fed would become vulnerable to political pressure as a result of deeper audits, but Paul dismissed that notion.

    Said Paul,” It’s very political when you have a Federal Reserve that can bail out one company and not another.”

    The bill now heads to the Senate where there has not been any indication of support or opposition. The White House has also been mum on the issue.

  14. C-span still running it right now. Watch it.

    Ron Paul asked the tough questions. Over and over. The old man who’s got nothing to lose went after it. I don’t like his followers. I sure as hell respect him!

    Geithner… incompetent and biased in 2008. In 2009. In 2010. In 2011 and today, before the House.

    Obama picked him right out of the Bush team. Any question?

  15. This is a great start, now let’s see you moveup the ladder and prosecute the bankers that have committed a fraud against California consumers a million times larger.

    C’mon you have some momentum – run with it now.

  16. Cabala…thats just too funny! Yet it’s not. We are a nation under siege.

  17. @ Cabala Harris: Orange County and Los Angeles are still full of these scam artists, who are mostly lawyers, so Cabala doesn’t touch the lawyer ones, like a ULG (United Law Group) which despite getting raided by FBI they filed bankruptcy and ran away with millions they ripped off borrowers who lost their homes… Bankruptcy helped them do the mass theft!!! more at: http://livinglies.wordpress.com/2012/07/24/millions-over-50-now-hit-with-foreclosure/#comment-156058

  18. Contact your senator immediately and tell to vote yes or else. That may be the only chance we get in a long time.

    House OKs ‘Audit The Fed’ Bill
    By Benny Martinez|7/25/2012 3:36 PM

    The House on Wednesday overwhelmingly approved legislation that would allow for a full audit of the Federal Reserve.

    The 327-98 vote defeated a two-thirds majority vote required under suspension of the House rules and represents a rare legislative win for the bill’s author Rep. Ron Paul (R-Texas), a longtime opponent of the Federal Reserve.

    The Federal Reserve Transparency Act, H.R. 459, gives Congress the authority to dig deeper into the Fed’s monetary decisions. The current rule allows the Government Accountability Office to audit the Fed with the exception of its monetary policy decisions.

    “The bill essentially removes the prohibitions against a full audit,” Paul said on the House floor. “We should know what kind of transactions there are.”

    Some of the bill’s biggest opponents argued that the Fed would become vulnerable to political pressure as a result of deeper audits, but Paul dismissed that notion.

    Said Paul,” It’s very political when you have a Federal Reserve that can bail out one company and not another.”

    The bill now heads to the Senate where there has not been any indication of support or opposition. The White House has also been mum on the issue.

  19. In my mind, these are the same ones that wrote the original toxic loans.

    In and Out. In and Out. That’s what a fraudster is all about.

  20. That “Homeowner Bill Of Rights” does NOTHING to address the fraud!!! So what if you can talk to one person and not have dual-tracking—the “mortgages” and foreclosures are still all based on fraud, and recorded documents that are fabricated, forged, and fraudulent.

  21. i dont like when scumbags take advantage of others, however this doesnt impress me at all !!!

  22. More “low hanging fruit….”

  23. Too bad she doesn’t go after the crooks who started this mess in the first place…only goes after the effect and not the cause…typical.

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