Taylor, Bean, & Whitaker Forced to Cease FHA, VA, and Freddie Mac Operations
With lenders coming under intense scrutiny for their less than stellar response to President Obama’s Making Home Affordable loan modification program, it was only a matter of time before one of the top major lenders folded. This week, Taylor, Bean, & Whitaker, the country’s 12th largest mortgage origination and servicing institutions was forced to cease its FHA, VA and Freddie Mac operations amid allegations that it mishandled terms of a settlement to create a fair loan modification program. Taylor, Bean, & Whitaker will no longer originate or service FHA, VA and Freddie Mac insured loans and is currently in the process of selling servicing rights to its portfolio.
For Taylor, Bean, & Whitaker customers who have FHA, VA, or Freddie Mac insured loans who are either delinquent, facing foreclosure, or who are seeking out loan modification services, this news puts a temporary hold on all activity. Adjust My Loan is actively working with TBW borrowers to find out the latest news on who will be servicing these loans and rapidly re-placing them in modification programs.
TBW customers who have mortgages insured by Fannie Mae or other investors such as Wells Fargo are not immediately affected by the closure, but there is a great deal of speculation that TBW may file for bankruptcy as a result.
If you are a TBW customer who has a foreclosure date in the next thirty days, contact Adjust My Loan. Our expert negotiators have been tracking this news and the progress of the servicing change to properly assist homeowners through this confusing time. Adjust My Loan can assist you in avoiding foreclosure despite the failure of TBW to provide modification services.
Many TBW customers are actually seeing this as a blessing in disguise. TBW had become notorious for having seemingly endless hold times, difficult to work with customer service staff, and ineffective loan modification services. To date, TBW has only offered trial loan modifications to 4% of eligible homeowners.
Adjust My Loan’s expert negotiators can help you if you are one of the many customers affected by this news. Our goal is to provide expert negotiation service to get you the best loan modification possible, to achieve a payment that is affordable and sustainable, and to provide peace of mind. Call us today at (800) 557-7573
HOORAY for homeowners in Arizona that no longer need to worry about Bobby Herrera scamming them out of their money. Sentenced to FIVE years for a loan modification scam (mortgage fraud) he orchestrated last year that victimized 47 valley homeowners. Our Attorney General Terry Goddard closed this case quickly after he began receiving complaints that he took homeowners money ($1245) with the promise of reducing their monthly mortgage payment and never provided the services. www.adjustMYLOAN.com can proudly say we work tirelessly to treat our clients with dignity and respect, but more importantly we get aggressive loan modifications done for our clients in the fastest time frame possible.
Now if we can only get rid of the other fake loan modification scam artists out there stealing homeowners money and precious time real loan modification companies like adjustMYLOAN.com will be able to help more families! Below is an article from AZFamily.com about the sentencing.
Arizona Attorney General’s Office
PHOENIX - The following is a press release from the Arizona Attorney General’s Office:
Attorney General Terry Goddard today announced that Bobby John Herrera, 33, of Glendale, has been sentenced to five years in prison as the result of a mortgage loan assistance scam he orchestrated that victimized 47 Valley homeowners. Herrera was also ordered to pay $80,541 in restitution to victims.
In December 2008, Herrera was arrested by Surprise and Peoria police in connection with the scheme. He pleaded guilty to one count of fraudulent schemes and artifices, a Class 2 felony, in Maricopa County Superior Court in April.
According to investigators, Herrera solicited struggling homeowners with fraudulent claims that he could modify mortgage terms or provide other assistance to help them prevent foreclosure. Herrera allegedly claimed to have “connections” and expertise negotiating with mortgage lenders to reduce consumers’ monthly payments and prevent foreclosure.
In exchange for the services he claimed to provide, investigators said Herrera often charged the victims upfront fees of $1,245. Herrera is alleged to have not provided any such mortgage loan modification or foreclosure relief assistance, using the money instead for personal expenses.
The Attorney General’s Office began receiving complaints about Herrera last December. In response to concerns raised in complaints, the Office initiated a criminal investigation into Herrera’s activities.
The investigation involved the Arizona Attorney General’s Office, Surprise Police Department and Peoria Police Department.
Assistant Attorney General Todd Lawson prosecuted this case in Maricopa County Superior Court. A photograph of Herrera is attached.
A consumer advisory on mortgage assistance scams was released in December. A copy can be found on the Attorney General’s Web site at http://www.azag.gov/press_releases/dec/2008/Mortgage%20Assistance%20Advisory.pdf .
Goddard recommends that homeowners who are in or facing foreclosure seek assistance promptly from their mortgage lender or servicer or a government-certified housing counselor. Federal, state and local governments offer numerous free resources for distressed homeowners, including the Arizona Foreclosure Help-Line at 1.877.448.1211.
Additional tips and resources are available on the Attorney General’s Web site, www.azag.gov.
DON’T BE A VICTIM OF A LOAN MODIFICATION SCAM! SPEND SOME TIME AND RESEARCH THE COMPANY YOU CHOOSE TO HELP NEGOTIATE YOUR MORTGAGE MODIFICATION. WWW.ADJUSTMYLOAN.COM WELCOMES YOU SHOPPING US AGAINST OUR COMPETITION AND WE BELIEVE OUR INTEGRITY AND APPROVAL RATE WILL SPEAK VOLUMES! GIVE US A CALL AND RECEIVE A FREE CONSULTATION ON YOUR SITUATION!
Arizona Man Pleads Guilty To Loan Modification Scam
Bobby Herrera, a local Glendale man who was charged with taking money form homeowners in foreclosure with false promises of getting them an Arizona loan modification plead guilty April 15th and faces five years in prison as well as a possible $73,000 in restitution to his victims. This is just another example of how important it is to research the person or company that is promising to help you modify your mortgage. These mortgage con artists say all the right things so it is so important to see where they work. Meet their team and ask for testimonials or references. Loosing your home to foreclosure is much too important to just leave things up to hope! Take back control of your situation by choosing a loan modification company that has the proof they can get the job done. Below is a press release from Arizona’s Attorney General Terry Goddard (which all of us at www.AdjustMyLoan.com support) about this scam. Bobby Herrera is scheduled to be sentenced May 13th and we will keep you up-to-date on the results as soon as they come out.
For Immediate Release
Mortgage Fraud Artist who Victimized 47 Valley Homeowners Pleads Guilty
(Phoenix, Ariz. - April 15, 2009) Attorney General Terry Goddard today announced that Bobby John Herrera, 33, of Glendale, has pleaded guilty to one count of fraudulent schemes and artifices, a Class 2 felony, in connection with a mortgage loan “assistance” scam he orchestrated that victimized 47 Valley homeowners.
In December 2008, Herrera was arrested by Surprise and Peoria police in connection with the scheme. He pleaded guilty yesterday in Maricopa County Superior Court. He is scheduled to be sentenced on May 13 and faces five years in prison as well as $73,000 in restitution to victims.
According to investigators, Herrera solicited struggling homeowners with fraudulent claims that he could modify mortgage terms or provide other assistance to help them prevent foreclosure. Herrera allegedly claimed to have “connections” and expertise negotiating with mortgage lenders to reduce consumers’ monthly payments and prevent foreclosure.
In exchange for the services he claimed to provide, investigators said Herrera often charged the victims upfront fees of $1,245. Herrera is alleged to have not provided any such mortgage loan modification or foreclosure relief assistance, using the money instead for personal expenses.
“Herrera was a wolf in sheep’s clothing. He preyed on struggling homeowners at a time when they could have been getting real help to save their homes and their families’ economic stability,” Goddard said. “I urge all homeowners who feel they are at risk of foreclosure to reject offers from costly ‘loan assistance’ businesses and get help from a HUD certified housing counselor. These counselors can be trusted to look out for your best interests and they won’t cost you a dime.”
The Attorney Generals Office began receiving complaints about Herrera on December 3, 2008. In response to concerns raised in complaints, the Office initiated a criminal investigation into Herrera’s activities. The criminal investigation into this case involved the Arizona Attorney Generals Office, Surprise Police Department and Peoria Police Department.
The Arizona loan modification experts at adjustMYLOAN.com have helped a couple of the victims of this loan modification scam artist so far. We were able to put some of his victims into decent modifications just in time to stop the foreclosure auction from taking their houses. We are not saying this to brag…just to let you know that there is such a thing as an ethical loan modification company out there that actually does the work they are paid to do. We understand how much time, effort, and skill is needed to navigate a complete loan modification from start to finish and also understand that most people don’t have the time to spend fighting it out with their lenders. Our loan modification service allows you to focus on your family and your job, while the loan modification is left to the professionals. We offer free consultations and never charge any expensive upfront fee’s for our service. Give us a call at 1-800-557-7573 and shop us compared to our competition. We believe you will be relieved once you get to know our professional staff.
As more and more homeowners realize that a loan modification is a viable solution to lower their monthly mortgage payments and avoid foreclosure, more and more fraudulent loan modification companies keep popping up to take advantage of the situation. Foreclosure rescue scams are nothing new and many homeowners have been taken advantage of in the past, however, these new loan modification scams are more devious and fraudulent then ever by masking themselves as “Attorney” (when they are really not), “Attorney-Based”, or even as ‘”Government Sponsored” (which is the worst of them all since there is no such thing)! We get dozens of homeowners each month reach out to us after they have been taken advantage of by a company or individual that promised to reduce their principal and/or get them a guaranteed loan modification only to pay an upfront fee and get no results. These unfortunate homeowners would then ask for a refund only to get the runaround or a disconnected number. The loan modification experts at www.AdjustMyLoan.com want to blow the whistle on these scam artists and lead generating companies and help homeowners avoid the same mistake as some of our current clients!
Understand Who You Are Submitting Your Information To:
The Lead Generating Company / Official Looking “Government” Website
Telemarketing has been around since the telephone became popular and over the real estate boom many telemarketing companies sold “refinance / loan products” and made millions! Once the real estate boom ended, so did their golden ticket! They immediately saw the need for a loan modification solution and since there were so many loan mod companies popping up they switched their pitch to loan modifications. They then sell these leads to companies or individuals for a fee ($5-$35 per lead) and get their leads from direct mailers or websites that look official but in reality do nothing but gather your personal data. The homeowner submits their information to the site thinking they are contacting a company but in reality they are only giving their private financial information to a telemarketing company. Below is a list of these websites to be aware of:
These are just a few of the many telemarketing companies that use your personal financial information to make money! WHY SEND YOUR INFORMATION TO A THIRD PARTY COMPANY LOOKING TO SELL A LEAD? Some of these websites look so official you really believe you are submitting your information to a government sponsored agency only to find out they are trying to charge you and expensive upfront fee for a service that doesn’t produce results!
Why Is AdjustMyLoan.com Different?
First and most importantly, we are a full-service (brick and mortar) loan modification company that has been negotiating loan modifications and short sales in Phoenix, Arizona for over 5 years. We are a member of the Better Business Bureau with zero complaints and can show you completed loan modification agreements between us and most major lenders. We are fully transparent and do not hide behind a corporate slogan…we invite you to get to know us in person or through our many videos on our website www.AdjustMyLoan.com. Our website, back-office tracking system, and negotiating processes are unique to us and designed to keep you educated and informed of your loan modifications progress from start to finish. NO OTHER LOAN MODIFICATION COMPANY HAS THE EXPERIENCE, INTEGRITY, AND PROCESSES WE HAVE HERE AT ADJUST MY LOAN. We invite you to get to know us and our professional Loan Modification staff. Lastly, we do not charge any expensive upfront fees for our loan mod service and always offer free consultations to see if you qualify!
If you are a homeowner facing foreclosure an searching for a solution to save your home, there are options available to you. A loan modification is a way to renegotiate your current loan terms, adjusting your interest rate, principal amount owed, or length of loan in order to lower your monthly payments. A lender is willing to do a LOAN MODIFICATION because it is a cheaper alternative than foreclosure.
As great of a solution a loan modification is, there are many “fly by night foreclosure rescue” companies out there looking to take advantage of your situation! BEWARE OF THE FOLLOWING LOAN MODIFICATION SCAM.
LARGE UPFRONT FEE SCAM:
These scams typically start by either a phone call, or an “official” looking document that uses scare tactics to get the homeowner all worked up about losing their home. Then, they offer a loan modification stating that it takes anywhere from 2-10 weeks to complete. They then charge a large upfront fee (typically $3000 - $7000) and promise to have a 98% success rate. They state that they have been helping homeowners for years and only they can help you. They offer a 100% money back guarantee if your not satisfied. This sounds good so you decide that you will do anything to save your home and pay. Once your money is collected upfront, in many instances you loan never gets modified. After some time the homeowner gets curious as to why they have not heard from the company or individual with an update. They start investigating and realize that the company does not have a physical address, nor will return their phone calls or money. The company or individual uses excuses such as “the homeowner never provided all the documentation needed” to get away with not doing any work. At the end of the day, the homeowner looses their home to foreclosure because it is typically too late by the time the realize they were scammed!
WHAT YOU NEED TO DO TO PROTECT YOURSELF:
MAKE SURE THE PERSON YOU ARE DEALING WITH HAS A PHYSICAL BUSINESS ADDRESS AND BUSINESS PHONE NUMBER.
MAKE SURE THE COMPANY YOU ARE DEALING WITH IS A MEMBER OF THE BBB
DO NOT PAY A LARGE UPFRONT FEE…A SMALL FEE IS OKAY BUT YOU SHOULD NOT HAVE TO PAY UNLESS THE LOAN MODIFICATION IS SUCCESSFULL.
MAKE SURE THE COMPANY YOU ARE USING HAS AN ONLINE TRACKING SYSTEM SO YOU CAN SEE THE PROGRESS OF YOUR LOAN MODIFICATION AT ALL TIMES
MAKE SURE YOU MEET THE COMPANY AT THEIR OFFICE AND SEE THAT THEY ARE CONDUCTING BUSINESS (GET TO KNOW THE COMPANY)
GET REFERRALS AND TESTIMONIALS TO VERIFY COMPANIES HISTORY
GET COPIES OF ALL PAPERWORK THAT OUTLINES THE BUSINESS RELATIONSHIP
Our “Worry Free Guarantee” provides you peace of mind when you need it most. WE ARE NOT A FORECLOSURE BAILOUT COMPANY! We are an PROFESSIONAL LOAN MODIFICATION COMPANY that specializes in loan modifications and short sales. Our expert loan modification negotiators will pre-qualify, package, propose, and negotiate a LOAN MODIFICATION on your behalf! We pride ourselves on being members of the BBB and in good standing. That we put all of our promises and guarantees in writing and have a 3 day rescission period in case you change your mind. That we have many referrals and testimonials. That we are located in downtown Phoenix, Arizona in a state of the art building that we own! THAT WE CHARGE NO UPFRONT FEE’S FOR OUR LOAN MODIFICATION SERVICE! Lastly, that we have an online tracking system that updates you on your loan modifications progress. We have spent hundreds of thousands of dollars building our company and advertising so we can help as many homeowners avoid foreclosure and stay in their homes. Our commitment to getting the job done and conducting business with honor and integrity is displayed to you from the second that you call! LOAN MODIFICATION INFORMATION
First becoming widespread in the 1990’s, many homeowners have been taken advantage by greedy loan originators and lenders who use predatory lending practices to maximize their own financial position! This together with low interest rates and our American culture of excess created the perfect storm that is now crushing the national housing market. AdjustMyLoan.com want homewners to be aware of these practices, and the laws put in place to protect you and your family. Our in-house attorneys are highly trained in both state and federal anit-predatory lending laws and in most instances can fight back stopping your foreclosure and in some cases put money in your pocket! A Loan Modification is the restructurin of your current loan terms in order to lower your monthly payments and keep you out of foreclosure!
EVOLUTION OF PREDATORY LENDING PRACTICES IN THE UNITED STATES!
According to the Neighborhood Works website there are 11 major reasons how predatory lending became so widespread. We will quickly list them below:
Consumer Credit Culture
Record-Low Interest Rates
Sub-Prime Industry Growth Boom
Increasing Home Values
Advent of Home Equity Loans
Consumer Demand for Home Improvement Loans
Record-High Homeownership Rates
Lack of Access to Regulated Capital
Unsure Consumers
Lack of Regulation
Unscrupulous Lenders & Brokers
This perfect storm is responsible for what is currently America’s worst housing crisis since the great depression. Predatory Lending along with Loan Modification will be the new buzz words as more and more homeowners realize the laws put in place to protect them as the search for solutions to Avoid Foreclosure!
WHAT PREDATORY LENDING PRACTICES TO BE AWARE OF?
Equity Stripping- This is where a lender takes a portion or all of a homeowners equity with no real benefit back to the homeowner. You are most sucseptible to equity stripping once you already are in foreclosure and a lender offers you a bailout loan!
Asset-Based Lending- This is where a lender gives a loan based on the equity in the home, or the rising appreciation rates currently happening in the area. They know that the homeowner’s ability to repay or afford the home loan is unlikely and will sell the home for a profit if the homeowner defaults.
Mortgage Flipping- This is where a lender continually refinances a home loan multiple times over a period of time with no real benefit to the homeowner. Each time they refi they eat up some of the homeowners equity by rolling high closing costs into the home loan.
Packing- This is kind of like when you buy a new car and the finance department tries to sell you a bunch of crap you don’t need (warranties). The same with packing…lenders pack in a bunch of insurances and fees for things you just don’t need without your consent or knowledge.
Foreclosure Rescue- This is typically from smaller institutions or investment companies that purchase a homeowners home at a discount stealing their equity before they lose it to foreclosure. They then rent it back to the homeowner with an option for them to purchase the home back at full market value.
Balloon Mortgage- A balloon mortgage has payments based on a 30-year amortization schedule with the unpaid principle balance due in a lump sum at a specified time, generally five to seven years. Borrowers believe they have applied for a low rate loan with low monthly payments. They learn at closing that it is a short-term balloon loan that will need to be refinanced within a few years.
Non-Disclosure- This is where your lender(s) avoid disclosing closing costs, fees, pre-paids, and interest rates in a timely manner. Each homeowner should be given a Good Faith Estimate and RESPA (Real Estate Settelment Procedures Act) special information booklet within three days of applying for a home loan. These forms explain a homeowners fees the borrower is likely to pay if they purchase a house. They also should recieve a Mortgage Servicing Disclosure Statement which discloses whether or not your loan originator is planning on servicing the loan or transfering it to another lender. Lastly, your HUD-1 which is the document that clearly states all charges involved in your transaction should be disclosed to you if requested the day before you actually close on the transaction. Most lenders to not follow these federal rules so their loans are in violation of federal law!
Bait And Switch- This is where your loan originator quotes you a certain low interest rate…maybe even shows it to you in your Good Faith Estimate. You then sell your current house, and at the closing table when purchasing your new home find out that your interest rate is considerably higher than expected. Your loan officer assures you that the bank switched it up but that with the way the current housing market is going you can just refinance in 6 months! Since you already sold your other home what choice to you really have? Then, the housing market crashes and you cannot refinance out of that high interest rate loan!
IF YOU FEEL YOU WERE A VICTIM OF A PREDATORY LOAN, CONTACT THE LOAN MODIFICATION EXPERTS AT ADJUSTMYLOAN.COM. OUR PROFESSIONAL LOAN MODIFICATION NEGOTIATORS CAN AUDIT YOUR LOAN PAPERWORK, UNCOVERING ANY PREDATORY LENDING VIOLATIONS! WE WILL THEN USE THESE VIOLATIONS AS OUR TRUMP CARD WHEN NEGOTIATING YOUR LOAN MODIFICATION GETTING YOU THE BEST MODIFICATION POSSIBLE! DON’T LET YOUR LENDERS BULLY YOU AROUND ANY LONGER…TAKE BACK CONTROL OF YOUR FINANCIAL FUTURE! CALL 1-800-557-7573 FOR A FREE LOAN MODIFICATION CONSULTATION!
