Tuesday, March 17, 2009

Homeowner Facing Foreclosure Out $10K, Faces Eviction Despite Hiring Loan Modification Firm & Attorney Accused Of Leaving 2,000 Cases Unattended

In Bakersfield, California, KGET-TV Channel 17 reports:

  • A local family says they are victims of a foreclosure scam. They came to 17News because, they say, the lawyer they paid $10,000 to help them took the money and did nothing.

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  • ''We had to pay $1,500 a month,'' [homeowner Eddy Herrera] said. The ''lawyer, which is Mitch Roth, would negotiate with the bank and help us lower our payments. He was supposed to modify our loan.” The Herrera family says a representative from attorney Mitchell Roth’s office told them to send monthly payments to a foreclosure relief company called United First. Herrera says the representative told them to ignore all letters from their lender, that everything was being handled. But seven months and $10,000 later, their house went up for auction. [...] The house was sold at the auction. Herrera says the supposed mortgage rescue company had never contacted the lender and he and his family are being evicted.

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  • A spokesman for the State Bar says it shut down Roth’s law offices after he was hospitalized in January and left 2,000 cases unattended. But in the meantime, the Herrera family says they still feel scammed. In court on Monday they were given two weeks to move out their home.

For the story, see 17News Investigation: Family blames attorney for foreclosure.

For a related post, see Federal Judge, State Bar Slam Attorney For Stiffing Clients Referred By Loan Modification Firm; Lawyer/Foreclosure Consultant Ties Now Facing Scrutiny. UnauthPractOfLawTheta

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