If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Some Cornhusker)   Couple falls behind on their mortgage, turns to the Federal Loan Modification Law Center. Several months later, they discover the FLMLC is a scam, and they're losing their home. Pity they didn't get the $8,000 tax credit   (journalstar.com) divider line 118
    More: Interesting, Federal Loan Modification Law Center, Federal Loan Modification, tax credits, Loan Modification, second mortgages, pity, Law Center, Better Business Bureau  
•       •       •

11273 clicks; posted to Main » on 30 Aug 2009 at 12:28 PM (4 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



118 Comments   (+0 »)
   

Archived thread

First | « | 1 | 2 | 3 | » | Last | Show all
 
2009-08-30 09:44:08 AM
I can solve all of this mess for them.
All I need is payment of $1295 or this special today only offer of just $1095 if sent western union by noon today.
 
2009-08-30 10:10:28 AM
There should be a law where lynching certificates can be issued. This fake company needs to get their necks stretched a bit.
 
2009-08-30 10:10:41 AM
It's going to be really easy to just come in and berate this couple for being a bunch of idiots who fell for what's "obviously" a scam and then make some snide, vaguely Darwin-related comments. But I've got to say that I've received some of these "mortgage modification" notices in the mail. The mailing looked pretty authentic--the company went all out to make it appear as if it were an actual government document. I can easily see how someone without much training or experience with financial matters would fall for one. It even seems like this couple at least tried to do their homework in that they researched the company with the BBB.
 
2009-08-30 10:55:58 AM
In February of that year, Kevin, who was 46 at the time, had a heart attack. He underwent quadruple bypass surgery the next month. He had barely recovered when Denise was struck by a brain aneurysm in August of that year. To help pay for their medical bills, the couple refinanced their mortgage and cashed out some of the equity in their home, which Kevin said at one time was as much as $60,000.

Things seemed as though they couldn't get any worse for the couple, but then Kevin lost his job right before Thanksgiving. The bad news continued just a few months later, when Denise, too, lost her job.

The Barrets again refinanced their mortgage in November 2007, increasing the mortgage debt from $148,000 to nearly $178,000 between a first and second mortgage, according to county real estate records. Denise said their mortgage payment jumped from around $1,300 a month to more than $1,800.

In August 2008, the couple filed bankruptcy, just after they started falling behind on their mortgage payments. County real estate records show Liberty First issued a default notice at the end of June 2008. Kevin said they'd fall behind on payments, catch up, only to fall behind again.


Ahh, the American dream.
 
2009-08-30 12:32:21 PM
Pocket Ninja: It's going to be really easy to just come in and berate this couple for being a bunch of idiots who fell for what's "obviously" a scam and then make some snide, vaguely Darwin-related comments. But I've got to say that I've received some of these "mortgage modification" notices in the mail. The mailing looked pretty authentic--the company went all out to make it appear as if it were an actual government document. I can easily see how someone without much training or experience with financial matters would fall for one. It even seems like this couple at least tried to do their homework in that they researched the company with the BBB.

Nothing else needs to be said in this thread.
 
2009-08-30 12:32:26 PM
Anyone else get pissed off at the commercials for shams like this? Takes every shred of self control to not rage out at the sheer amounts of stupid.
 
2009-08-30 12:33:12 PM
If a "federal" program does not end in ".gov", it is not federal.

Morans.

Sad, but, still morans.
 
2009-08-30 12:36:43 PM
Pocket Ninja: But I've got to say that I've received some of these "mortgage modification" notices in the mail. The mailing looked pretty authentic--the company went all out to make it appear as if it were an actual government document.

A few weeks ago I got a letter from the "Property Tax Review Board". They wanted $189 to try and get my property taxes lowered. The property tax info they had on there was from 2 years ago when my house was worth twice what it is now, and they said they'd lower my taxes to what they are now. I knew it was fake, but it did make local TV (new window).
 
2009-08-30 12:38:09 PM
a fool and his money...
 
2009-08-30 12:41:18 PM
Look, everybody can't be a genius, like we are here on Fark. I think that most people who get scammed are idiots, but for every faintly gullible and trusting person, there are 100 scam artists out there to try to con them into something.

You don't know that until you learn it, usually the hard way.
 
2009-08-30 12:43:46 PM
I used to answer phones through another company for Federal Loan Modification Law Center. All those motherfarkers from middle-management on up deserve prison time. The managers lied to everyone, including the employees, and we ended up lying to consumers. The prick CEO even lied under oath during the Bankruptcy hearing for the company I worked for, and I called him out on it. The scary part is that I could have been the one to sign these people up, and done so thinking that I was actually helping them.

The bottom line with Debt Renegotiation Services is this: you're paying lawyer prices for what amounts to High School proofreading, for something you could realistically do yourself.

/Don't hate me, hate the people that ordered me around
 
2009-08-30 12:43:49 PM
Guilty here. When the home modification loans first started being whispered, my parents gave $1,000 to a company who said they were specializing in the new home loans. It was easy enough to believe, because it was a family member of my pop's friend. We were advised to just stop bothering with the house payment (not that we COULD have paid it) and 3 months later we're getting a nice letter of foreclosure. It's then that we start calling the bank back, they call us farking idiots, and we manage to get our money + house back. We're still on REAL shaky ground, and I might just have to cut my college degree early, but at least we didn't have the cops knocking on our door to give us a 24 hour notice to vacate.
 
2009-08-30 12:48:28 PM
UltimaCS: Guilty here. When the home modification loans first started being whispered, my parents gave $1,000 to a company who said they were specializing in the new home loans. It was easy enough to believe, because it was a family member of my pop's friend. We were advised to just stop bothering with the house payment (not that we COULD have paid it) and 3 months later we're getting a nice letter of foreclosure. It's then that we start calling the bank back, they call us farking idiots, and we manage to get our money + house back. We're still on REAL shaky ground, and I might just have to cut my college degree early, but at least we didn't have the cops knocking on our door to give us a 24 hour notice to vacate.

For the record, what they told you about skipping house payments was completely illegal. If you haven't already, file a complaint with the FTC. They probably were already biatchslapped in May or June, but adding fuel to the fire never hurts in situations like this.

/Wishes I could apologize in person to the dozen people I harmed
 
2009-08-30 12:52:22 PM
Excen: The bottom line with Debt Renegotiation Services is this: you're paying lawyer prices for what amounts to High School proofreading, for something you could realistically do yourself.

Well said. I'm a lawyer and a couple of my clients have brought me some of these pitches they've received, which I fortunately was able to steer them away from.
 
2009-08-30 12:52:53 PM
doglover: There should be a law where lynching certificates can be issued. This fake company needs to get their necks stretched a bit.

I guess, but... Any country that allows a private company to use a word like "Federal" in its name wants to fool people into trusting a company because of an association with the government. On top of it, this couple shouldn't be losing their house. They were fooled, and the bank should be forced to concede to reality - these people were convinced they were following good, expert advice, which is exactly what the bank would want them to do. Taking their home is just going to make everyone a little less likely to find an expert to help them make payments or renegotiate. Finding an expert should not be a risk. If your system is founded on the assumption of scams, obviously your economy is going to fail and your people will struggle. These folks are getting no protection at all. It's totally illogical from all angles.

If the law won't protect consumers from businesses then there's no reason to think it will allow consumers to protect themselves. What I want to know is, what kind of scams does the government have running that they won't protect consumers?
 
2009-08-30 12:54:58 PM
Why did they cash out equity to pay medical bills? That has to be about the dumbest thing you can do if you're on shaky financial ground. They went from unpaid unsecured debt, debt that the doctors couldn't do much to collect, to securing the debt with their farking home. The doctors weren't going to undo his bypass surgery, but the bank can certainly take the house.
 
2009-08-30 12:56:22 PM
whiskeyinthejar: The Barrets again refinanced their mortgage in November 2007, increasing the mortgage debt from $148,000 to nearly $178,000 between a first and second mortgage, according to county real estate records. Denise said their mortgage payment jumped from around $1,300 a month to more than $1,800.

Sounds like they came out 30k ahead... they should just take the money and run.
 
2009-08-30 12:56:52 PM
doglover
There should be a law where lynching certificates can be issued. This fake company needs to get their necks stretched a bit.


I am constantly amazed that people like this don't end up with Excedrin headache number .357 more often.
 
2009-08-30 12:57:29 PM
jpatrickoneal: Why did they cash out equity to pay medical bills? That has to be about the dumbest thing you can do if you're on shaky financial ground. They went from unpaid unsecured debt, debt that the doctors couldn't do much to collect, to securing the debt with their farking home. The doctors weren't going to undo his bypass surgery, but the bank can certainly take the house.

Some idiots just have this stupid desire to actually pay their bills rather than milk the system. We need to get rid of those idiots and get more people like you who recommend on just ignoring debts that don't have consequence.
 
2009-08-30 12:57:58 PM
*mutters something about Obama shakes head moves on
 
2009-08-30 12:59:12 PM
Doppleganger871: If a "federal" program does not end in ".gov", it is not federal.

Morans.

Sad, but, still morans.


FAIL. See: AnnualCreditReport.com. Here's proof that it's legit.
 
2009-08-30 12:59:31 PM
Excen: For the record, what they told you about skipping house payments was completely illegal. If you haven't already, file a complaint with the FTC. They probably were already biatchslapped in May or June, but adding fuel to the fire never hurts in situations like this.

That's interesting to hear. We went out of our way NOT to mention that they told us to do that, because we figured that the bank would say "Okay... so where's that $5,000 that you've been 'saving up' for us then?".
 
2009-08-30 12:59:51 PM
MycroftHolmes: Some idiots just have this stupid desire to actually pay their bills rather than milk the system. We need to get rid of those idiots and get more people like you who recommend on just ignoring debts that don't have consequence.

Or we could nationalize the system to marginalize people like jpatrickoneal, but Republicans don't want freeloaders to get a free ride off of their taxdollars. THEY want to get the free ride.
 
2009-08-30 01:02:14 PM
Alright - so....

A couple that took a bunch of money from a company and then failed to keep up their end of the contractual agreement...is upset that a company that took a bunch of money from them has failed to keep up their end of a contractual agreement?

The screwed the mortgage company out of some...~170k and they are pissed off that some other company screwed them out of a few k? And they have the balls to assert the 8k going to new home owners (which I think is crap, personally, but that's another story) should go to them. Because, *clearly* they've shown such great financial skills thus far.

People, as a whole, are really, really pathetic.
 
2009-08-30 01:02:34 PM
AC21365: Anyone else get pissed off at the commercials for shams like this? Takes every shred of self control to not rage out at the sheer amounts of stupid.

turn off the box. call the station. tell them you're not watching anymore
 
2009-08-30 01:03:16 PM
jpatrickoneal: Why did they cash out equity to pay medical bills? That has to be about the dumbest thing you can do if you're on shaky financial ground. They went from unpaid unsecured debt, debt that the doctors couldn't do much to collect, to securing the debt with their farking home. The doctors weren't going to undo his bypass surgery, but the bank can certainly take the house.

They earnestly (perhaps foolishly) thought they were going to pay off everything, eventually. The second mortgage was likely at 6-7% amortized over a 30 year repayment (maybe even at a teaser rate for the first few years), while the medical bills, if they said anything other than "pay this amount now" may have been ringing up 20% interest/late-fees and amortizing on a 5-year repayment.
 
2009-08-30 01:04:15 PM
It's too bad the real Feds don't get involved until the victims are way too numerous.
 
2009-08-30 01:06:08 PM
Fark_Guy_Rob: Alright - so....

A couple that took a bunch of money from a company and then failed to keep up their end of the contractual agreement...is upset that a company that took a bunch of money from them has failed to keep up their end of a contractual agreement?

The screwed the mortgage company out of some...~170k and they are pissed off that some other company screwed them out of a few k? And they have the balls to assert the 8k going to new home owners (which I think is crap, personally, but that's another story) should go to them. Because, *clearly* they've shown such great financial skills thus far.

People, as a whole, are really, really pathetic.


They thought they were engaging a service to renegotiate their loan, with the intention of making good on it. How, exactly, does that constitute screwing over the mortgage company?
 
2009-08-30 01:06:08 PM
Boofarkinhoo
 
2009-08-30 01:08:59 PM
Was the address in Nigeria?
 
2009-08-30 01:12:46 PM
Doppleganger871: If a "federal" program does not end in ".gov", it is not federal.

Morans.

Sad, but, still morans.


You mean like the United States Postal Service (new window)?
 
2009-08-30 01:13:21 PM
As long as there are Bankruptcy Courts in this country, we basically have socialized medicine. At least all the worst parts, anyway.
 
2009-08-30 01:14:50 PM
Most of this is just sad, the only thing i want to make sure people know is the BBB is a scam. If you pay their money, you cant ever have a negative rating, if you dont, one complaint and you are unsatisfactory.

when the bbb guy came inot my company he said "we just want your money" our endorsement matters to those it matters to"

look up quicken loans on your bbb, they will have 1000's of complaints and be satisfactory...

check out www.ripoffreport.com for the real skinny on companies
 
2009-08-30 01:15:24 PM
Inescapable Future of Humanity: MycroftHolmes: Some idiots just have this stupid desire to actually pay their bills rather than milk the system. We need to get rid of those idiots and get more people like you who recommend on just ignoring debts that don't have consequence.

Or we could nationalize the system to marginalize people like jpatrickoneal, but Republicans don't want freeloaders to get a free ride off of their taxdollars. THEY want to get the free ride.


I have health insurance, I'm not a freeloader. In fact, my health insurance is expensive to compensate the losses doctors take on treating the freeloaders. I don't think nationalizing is a good idea, but requiring employers to provide insurance isn't a bad idea. My employer pays $5/hour for health insurance. We're in the contracting business. I'd be willing to bet that would go down to half or less if all our non-union competition was forced to insure their employees instead of sending them to the emergency room on our dime.

That being said, shifting unsecured debt that you're unable to pay into home equity is a horrible idea. They screwed the bank instead of the doctor, and lost their home in the process. That's somewhere between honorable and stupid.
 
2009-08-30 01:16:44 PM
moothemagiccow: turn off the box. call the station. tell them you're not watching anymore

Even better, write the producers of the show that has them as a sponsor and tell them you're not watching anymore.
 
2009-08-30 01:19:23 PM
UltimaCS: Excen: For the record, what they told you about skipping house payments was completely illegal. If you haven't already, file a complaint with the FTC. They probably were already biatchslapped in May or June, but adding fuel to the fire never hurts in situations like this.

That's interesting to hear. We went out of our way NOT to mention that they told us to do that, because we figured that the bank would say "Okay... so where's that $5,000 that you've been 'saving up' for us then?".


Do you have a go-to person at your bank? Because if you're talking to one person and have rapport with them, mentioning that will go a long way to help you get back on track. Banks want these services shut down even more than you do, and any ammunition you give them to do so will help both you and them. Scams like FedMod (to use the nickname) cut into their bottom lines by causing even more foreclosures, as well as a drop in mortgage rates (and thereby revenue) for the rare consumer that ends up getting a modification. The point is, most consumers that pay for these types of services are using credit cards, not savings, anyway.

I would offer you advice as to your situation, but I'm not a trained debt counselor, and it would be imprudent for me to act like one, given my background. I will say this though: if you have cash on hand, good-faith payments go a long way with a bank.

/There's a special circle of hell reserved for Derek Oberholtzer and Steve Lux
 
2009-08-30 01:22:27 PM
MycroftHolmes: Some idiots just have this stupid desire to actually pay their bills rather than milk the system. We need to get rid of those idiots and get more people like you who recommend on just ignoring debts that don't have consequence.

This comes down to the street axiom "Don't hate the playa, hate the game." What motivation is there to do the responsible thing anymore?
I bought a reasonably priced home ($194,000 in N California) with mortgage payments of $1640. I know people that bought $600,000 homes on an ARM, couldn't pay it, and Mr. Government stepped in to help. One of them quite literally has a mortgage payment lower than mine after the readjustment. So even though I feel like I did the responsible thing, I could have had a new, much larger house for about the same price if I was capable of being a self-absorbed asshat.
 
2009-08-30 01:23:24 PM
Funny how they slam Obama for the $8,000 for the new home.

Yet, it sounds like the core problem here was a lack of health insurance, and a bunch of bills surrounding that, and then them losing their jobs because they were unable to continue working at the level they had before.

Sounds like if they didn't have massive medical bills, things would be FAR better for them.
 
2009-08-30 01:26:58 PM
I'll offer free advice to anyone that wants it from here. I am licensed and qualified to do it. I DONT do it professionally, cuz i think its a scam in most cases, and giving false hope. but if a farker wants to do it for themselves, ill help them, again for free....

email in profile.

Licensed Mortgage Broker and Real Estate Broker.
 
2009-08-30 01:28:37 PM
It's a sad state of affairs when falling ill can rob you of your home.
 
2009-08-30 01:28:55 PM
redcard: Funny how they slam Obama for the $8,000 for the new home.

Yet, it sounds like the core problem here was a lack of health insurance, and a bunch of bills surrounding that, and then them losing their jobs because they were unable to continue working at the level they had before.

Sounds like if they didn't have massive medical bills, things would be FAR better for them.


That's why it's a good idea to at least get catastrophic medical coverage. Hell, a policy with a maximum out of pocket for a single illness of something as high as $5000 would have been fantastic for them. Sure, the everyday medical stuff would have cost them money, but the aneurism and heart attack would have been cut off at 10k.
 
2009-08-30 01:29:32 PM
Saw the adds, How can you trust a company that tries to fool you by looking like a news show?
 
2009-08-30 01:30:22 PM
From TFA, $60,000 in medical bills is what pushed this couple over the edge into refinancing their mortgage and getting into the position where they couldn't keep up their payments.

My dad had quadruple bypass surgery and we didn't have to consider refinancing the mortgage and risking my parents' home to save his life because we have health care.

/the dots, connect them, my american friends
 
2009-08-30 01:30:29 PM
jdetweiler: [Blah Blah, the BBB is an extortion firm]

check out www.ImATool.com for the real skinny on companies


Ad revenue dropping off for your website or something?
 
2009-08-30 01:34:03 PM
Excen: jdetweiler: [Blah Blah, the BBB is an extortion firm]

check out www.ImATool.com for the real skinny on companies

Ad revenue dropping off for your website or something?


troll much?
0/10
 
2009-08-30 01:39:06 PM
loser_death_spiral: FAIL. See: AnnualCreditReport.com. Here's proof that it's legit.

Actually, you fail. The point that Doppelganger was trying to make was that if the program has "FEDERAL" in the name, with no .gov after the domain, it's probably fake. Not that actual Federal programs will always use .gov.

Reading comprehension is a wonderful thing.
 
2009-08-30 01:41:36 PM
Mortgage Resources (Federal Reserve)
5 Tips For Avoiding Foreclosure Scams (Federal Reserve)
5 Tips For Protecting Your Home From Foreclosure (Federal Reserve)
Consumer Help (Federal Reserve)
Mortgage/Real Estate Resources (Federal Trade Commission)
Foreclosure Rescue Scams (Federal Trade Commission)
Mortgage Payments Sending You Reeling? Here's What To Do (Federal Trade Commission)
Consumer Protection (Federal Trade Commission)
HUD-Approved Housing Counseling Agencies (US Dep't of Housing and Urban Development (HUD)) or call 1-800-569-4287
Hope Now (mortgage industry alliance to assist consumers)
 
2009-08-30 01:46:32 PM
In February of that year, Kevin, who was 46 at the time, had a heart attack. He underwent quadruple bypass surgery the next month. He had barely recovered when Denise was struck by a brain aneurysm in August of that year. To help pay for their medical bills, the couple refinanced their mortgage and cashed out some of the equity in their home, which Kevin said at one time was as much as $60,000.

Things seemed as though they couldn't get any worse for the couple, but then Kevin lost his job right before Thanksgiving. The bad news continued just a few months later, when Denise, too, lost her job.

The Barrets again refinanced their mortgage in November 2007, increasing the mortgage debt from $148,000 to nearly $178,000 between a first and second mortgage, according to county real estate records. Denise said their mortgage payment jumped from around $1,300 a month to more than $1,800.

In August 2008, the couple filed bankruptcy, just after they started falling behind on their mortgage payments. County real estate records show Liberty First issued a default notice at the end of June 2008. Kevin said they'd fall behind on payments, catch up, only to fall behind again


Now, I havent done it for about 12 years and I know the rules have changed some since then, but if they would have declared bankruptcy without the refinance, they most likely would have been able to keep the house and at least one car and had the medicals etc discharged or at least brought down into a realistically payable range.

/IANAL
 
2009-08-30 01:46:36 PM
Doppleganger871
If a "federal" program does not end in ".gov", it is not federal.

Morans.

Sad, but, still morans.


I guess this doesn't qualify as federal.(^)

i225.photobucket.com
 
2009-08-30 01:49:01 PM
Incidentally, FTFA: "They're giving these brand-new homeowners $8,000 bonuses," she said. "Why aren't they helping the people who are losing their homes?"

There are programs to help people facing foreclosure, but the Barrets say they found out about them too late.


These two lines wiped away any sympathy I had for them. I'm sorry, but they're morons. For them to complain that there are no programs to help people facing foreclosure, and then say immediately afterward that they learned about the programs too late, is just plain stupidity.
 
Displayed 50 of 118 comments

First | « | 1 | 2 | 3 | » | Last | Show all



This thread is closed to new comments.

Continue Farking
Submit a Link »






Report