Complaint Review: First Family Justice Center Inc. - Santa Ana California

Be wary of anyone who promises that they can "fix" your mortgage for you. Anything they "claim" they can do, you can do better.

 With as many as 8 million American homeowners facing foreclosure in the next year, there are many pop-up "rescue" companies swooping in to take advantage of people in desperate financial situations.
 
Even if you haven't been experiencing issues with making payments on your mortgage, you've probably noticed ads on TV, radio, online, and in print that 100% guarantee to modify your mortgage to make it more affordable. Maybe they've even found a way to contact you directly and you've been tempted to go along.
 
The truth is that whatever they promise to do for you-and some charge up to $7,500-you can likely do just as well if not better yourself and for free.
 
Be extremely wary of scams if you read or hear any of the following from a company or individual that promises to "fix" your mortgage:  
 
1) They want upfront fees: This is illegal. Foreclosure consultants are not allowed to collect any money before performing services for you.
 
2) They want you to transfer the title of your house to their company: This is often a simple scam to get you to hand over your home. Oftentimes, the promise is that you will be able to buy it back or lease it, but most people just get evicted.
 
3) They want you to pay your mortgage payments to their company, rather than to your lender: Quite simply, they will in all likelihood keep your money for themselves.
 
4) They ask that you ignore letters from your lender or loan servicer: Actually, you should be reading those letters and trying to deal with them.
 
5) They rush you into signing documents without reading them first: This is often a trick where you think that you are signing official documents to help your cause, but you are actually transferring over ownership of your house. This sadly happens quite frequently.
6) They ask you to not consult with a lawyer: Come on! If their business was legit, why would consulting with a lawyer be a problem?
7) They guarantee you a loan modification: How is this even possible without knowing your situation?
 
8) They tell you not to talk to government-approved counselors for advice: this is exactly what you should be doing.
 
So, what should you do?
First of all, If you are falling behind on your mortgage, start seeking help before you go into foreclosure.

Learn as much about the mortgage modification process as possible. 
Call your lender yourself and see if you can make a deal. Foreclosure is expensive for your lender, and therefore your lender is far more likely to make a deal with you.
Get in touch with a housing counselor at the U.S. Dept. of Housing & Urban Development (HUD) or a local (not national) HOPE housing counselor.
People in desperate situations often feel powerless and are not thinking clearly or using common sense. They do not realize that they actually have the power to help themselves.
 
They so want a miracle that they forget that if it sounds too good to be true it probably is.   

Read more: http://community.nasdaq.com/News/2011-06/8-ways-to-spot-loan-modification-scams.aspx?storyid=79330#ixzz1SymQCOAE

http://www.dfi.wa.gov/consumers/alerts/kramer-kaslow.htm

Many Washington consumers have reported receiving misleading advertisements such as the ones shown here:

Sample Advertisement 1 (PDF)*
Sample Advertisement 2 (PDF)*
The Department of Financial Institutions has conducted an investigation of the source of these materials, and ascertained that they are neither from the consumers lender or any branch of the government, but from companies affiliated with a California law firm, Kramer & Kaslow, and a professional corporation called "Consolidated Litigation Group."
In late 2010, these affiliated companies sent mailings to Washington consumers for loan modification services; in early 2011, the advertisements were for forensic loan audits (mortgage loan compliance review).
Fees for loan modification services were reported as $3,000 or more; the "mortgage loan compliance review" was quoted as $2,500, fully refundable if no violations are found.
If the modification efforts are unsuccessful, or the forensic loan audit uncovers "predatory lending violations", the consumers are then solicited to become a plaintiff in a mass joinder lawsuit with "Consolidated Litigation Group."
Initially this inclusion required no extra fees; however, recent consumer reports indicate that the fees to join the "mass joinder lawsuit" are quoted as $1,500 or more.
Unlicensed Loan Modification Services and Advance Fees
Washington state law requires third-party loan modification companies to be licensed with the Department of Financial Institutions. To date, none of the companies affiliated with these advertisements are licensed with the Department in any capacity.
Earlier this year, the federal Mortgage Assistance Relief Services (MARS) Rule was issued to protect struggling homeowners from being further victimized by "loan modification" and other mortgage relief scams.
The most important aspect of this rule is a ban on advance fees. Under this provision, mortgage relief companies may not collect any fees until they have provided consumers with a written offer from their lender or servicer that the consumer decides is acceptable, and a written document from the lender or servicer describing the key changes to the mortgage that would result if the consumer accepts the offer. The companies also must remind consumers of their right to reject the offer without any charge.
The MARS rule has a section for attorneys conducting loan modification or other mortgage relief services. To be exempt from this Rule, attorneys must meet three conditions:

they are engaged in the practice of law
they are licensed in the state where the consumer or the dwelling is located
they are complying with state laws and regulations governing attorney conduct related to the rule.
To be exempt from the advance fee ban, attorneys must meet a fourth requirement they must place any fees they collect in a client trust account and abide by state laws and regulations covering such accounts.
About Mass Joinder Lawsuits
According to Consolidated Litigation Group, P.C., there are four California attorneys associated with this litigation group:

Philip Kramer
Mitchell J. Stein
Theodore Maloney
Christopher J. Van Son
The Department of Financial Institutions has determined that none of these attorneys, affiliated with the mass joinder litigation connected to this advertisement, are licensed to practice law with the Washington State Bar. This conduct has been referred to the Washington State Bar for potential action.
These attorneys, however, are apparently eligible to practice law in California. The State of Californias Department of Real Estate (CA DRE) has issued its own Consumer Alert regarding mass litigation or mass joinder lawsuits being marketed to consumers. You can read the CA DRE Consumer Alert at www.dre.ca.gov/pdf_docs/ca/ConsumeAlert_WarningreMassLitigation.pdf.
Additionally, the Better Business Bureau (BBB) also recently issued its own Consumer Alert regarding mass joinder lawsuit mailings. You can read the BBB Consumer Alert at www.bbb.org/us/article/bbb-warns-homeowners-mass-joinder-lawsuit-mailings-may-be-latest-advance-fee-mortgage-modification-scheme-26797.
The Department of Financial Institutions would like to encourage all Washington consumers to verify that any loan modification service they consider engaging is properly licensed with the Department of Financial Institutions and complying with the MARS Rule and applicable state law.
Consumers are also encouraged to conduct internet research on the company to check for possible consumer complaints and to learn more about the company. For Washington consumers whose home is in jeopardy due to default or financial troubles, please visit the "Washington Homeownership Information" website at www.homeownership.wa.gov for information on how to obtain free assistance in working with your lender prior to foreclosure.
For more information, contact the Department of Financial Institutions at 1.877.RING DFI (746-4334).

Nice try and covering this scam...."Suzzette made me laugh". Who would possibly be laughing when they are about to lose their house?? And about on in a million SuZettes spell their name with 2 z's so how would poster know this...because they are a fraud too.  See what the DRE says about First Family Justice Center and similar companies.  I worked for this deranged alcoholic and it's amazing Adrian Aguirre of Allstar Mortgage and Home Capital Realty allows this criminal activity to occur on his premises.....

Watch out for loan modification scams, the California State Department of Real Estate (DRE) is warning customers. The DRE has filed a record number of actions against scammers who have offered loan modification and loan mortgage relief services
Since 2008, the DRE has opened more than 4,500 cases that involve loan modification complaints, as well as 88 accusations accusing 159 real estate professionals of violating real estate laws in connection with offering loan modification services.
One popular loan scam: The assurance of a loan modification in exchange for an upfront fee. Once the fee is paid, the scammer does little or nothing to obtain a loan modification.
"With so many home owners facing financial hardship, foreclosure rescue and loan modification scams are very prevalent and consumers need to be on guard," says DRE Commissioner Jeff Davi. "We have seen many variations of scams, but most all involve the collection of illegal advance fees. If someone asks for money upfront, that is a huge red flag.

The DRE is telling customers to avoid becoming a victim of a scam by never paying an upfront fee for loan modification services and being skeptical of promises of guaranteed success. They are encouraging home owners to contact a HUD approved counseling agency, which can provide loan modification services for free (http://www.yourhome.ca.gov/mortgage-help.shtml#scams).
Source: California Department of Real Estate Continues to Fight Loan Modification and Loan Mortgage Relief Scams, Businesswire.com (Feb. 24, 2011)

Read more: http://www.ibtimes.com/articles/120265/20110308/calif-sees-record-number-of-loan-scams.htm#ixzz1Hx45e8dZ

Is JACK MICHAEL SCHNEIDER licensed with DRE?????

When I received the notice of default from my bank I tried to work with them on a loan modification but was given the runaround. For 6 months I was constantly asked to provide additional information and to wait for a decision meanwhile the date for the sale of my home got closer and closer.  I was told by the banks not to talk to anyone and so I waited.  4 days before my house was to sell I was told the modification had been denied.  I panicked and called a friend who had been in a similar situation as mine and was given the name of the consultant he had worked with.  I called and spoke to Suzzette and she made me laugh and understand that I still had time to save my house. And I have recommended her to 2 other friends that are waiting for their loan modifications to be approved.  

We were contacted by this company and my husband was about to sign and send money. It didn’t sound right so I did some research and found it was American Freedom Processing just last year wich is probably the same thing as American Freedom Fianancial  that is a total  scam and has bad reviews too on here.  The The 866-384-2775 number was the same. Thank you for posting this as we are in dire financial shape and have a son with special needs.  ALL these people will get whats coming to them.....