Beware of Local Loan Modification Scams
Bogus loan modification companies are preying on vulnerable foreclosure victims by charging them hefty fees to negotiate mortgage terms. Victims say that after the fees have been paid, the scammers fail to perform.
One such company is ShortRefiNow.com located in Roseville, CA. Victims say that after paying anywhere from $2,600 to $3,600 up front to get their loan modified, Short Refi Now failed to perform.
“They took advantage of me because they knew I was between a rock and a hard place,” said a victim located in Washington state. “They told me not to pay my mortgage and now I’m even further behind.”
One Roseville resident said it was credit counseling agency StartOverToday.com that referred her to Short Refi Now to perform the loan modification.
“After working with Short Refi Now for only 120 days we realized the way they ran their business wasn’t up to par with how we ran ours,” said Fred Lacker, COO of StartOverToday.com. “We immediately severed all ties with Short Refi Now; we moved out immediately, requested that they return all files to us, and offered our clients ,at our own expense, a new company that is accredited by the BBB.”
It is the BBBs understanding that in order to perform a loan modification, companies must be registered with the Department of Real Estate (DRE). Furthermore, to collect an advance fee, companies must have a specific agreement with the DRE in which the money gets placed into a trust fund and is released to the company after a successful loan modification has been performed.
The California Department of Real Estate alleged that Shortrefinow.com did not have the required license and, among other things, that they solicited and/or performed services for borrowers and claimed, demanded, received, collected or contracted for an advanced fee for such services.
Short Refi Now currently has an “F” rating with the Better Business Bureau for failing to respond to complaints filed against them, lack of background information, and the number of complaints filed against them. In the past 36 months the BBB has received eight complaints, seven of which have been unanswered.
The California Department of Real Estate has ordered that they desist and refrain from performing any and all acts for which a real estate license is required until such time as they obtain the required license.