Four law firms in Southern CA allegedly banded together to file “mass joinder” lawsuits, which effectively folded cases with separate but similar circumstances into one legal filing. Around 2,500 California homeowners were tricked into paying thousands of dollars to join a lawsuit against lenders that went nowhere. False promises were made to the plaintiffs to entice them to sue the lenders. They told them that foreclosure proceedings would be stopped and their monthly payments reduced. The attorney general is suing the law firms of Philip Kramer, Christopher Van Son, Paul W. Petersen and Mitchell Stein, which also has an office in Walnut Creek.
Since 2009, 20 attorneys in California have either been disbarred or given up their license after they got in trouble from loan-modification rescue scams.
Telemarketers gave homeowners misleading advice and information about the benefit of joining the case, according to Harris’ suit. Call center companies were also named in the suit.
CA law makes it illegal to ask for an upfront payment for loan-modification services. This law applies to real estate licensees and attorneys.
Red Flag Foreclosure Rescue Scams Foreclosure rescue companies in Orange County claim they will help you save your home, but really they are out to make money off of your hardship. These are the red flags:
Asks for money upfront before performing any service
Instructs you not to contact your lender, lawyer, hosuing counselor, family, friends
Instructs you to make your mortgage payments directly to them or their company in the form of cash, cashier’s check, or wire transfer
Promises to stop the foreclosure process no matter what the circumstances are
Advises you to transfer the title or deed to their company perhaps for a leaseback or buy the property from you by a price they dictate
Asks you to give power of attorney, asks you for signatures on a document with lines left blank, signatures on a grant deed or deed of trust, and fails to provide you with copies of signed documents
We always suggest you seek an attorney or financial counseling www.hud.gov to view guide on avoiding foreclosure or California HUD approved counseling services.
If you have been approached or a victim of foreclosure rescue scams I encourage you to report them to
http://ag.ca.gov http://www.dre.ca.gov http://www.hud.gov http://www.ftc.gov http://www.bbb.org
Equal Housing Opportunity. Equal Opportunity Employer. It is illegal to discriminate against any person because of
race, color, religion, sex, handicap, familial status, or national origin.