Tuesday, December 6, 2011

California AG Pinches Trio In Alleged Loan Modification Racket That Clipped Homeowners For Up To $5K In Upfront Fees For Bogus Mortgage Help

From the Office of the California Attorney General:

  • Attorney General Kamala D. Harris [] announced the arrests of three top officers of a Stockton real estate company who took thousands of dollars in up-front loan modification fees and made false promises to lower the mortgage payments of struggling Central Valley homeowners.

  • Magdalena Salas, 42, Angelina Mireles, 42, and Julissa Garcia, 36, of Stockton, were arrested today on 13 felony and two misdemeanor counts, including conspiracy, grand theft and false advertising. They are being held at the San Joaquin County Jail on $100,000 bail.


  • Salas, owner of Legacy Home Loans and Real Estate, Mireles, her twin sister, and Garcia took up-front fees of up to $5,000 from dozens of Central Valley homeowners for loan modification services that were never performed.

  • From November 2009 to August 2011, Salas and her employees circulated flyers throughout Stockton that read, in both English and Spanish: "We will save your home! Guaranteed!" and "Guaranteed new lower mortgage payments!" Along with the flyers, Legacy Home Loans ran television and radio advertisements in English and Spanish and broadcast its services on a billboard.

  • Clients of Legacy Home Loans and its related businesses - including Salas Properties, Salas Estates, Peace and Freedom Legal Services and Divinity Legal Services - were promised a full refund if they did not receive a loan modification. Many clients ended up losing their homes.

For the California AG press release, see Attorney General Kamala D. Harris Announces Arrests in Stockton Foreclosure Scam.

For the criminal complaint, see People v. Salas, et al.

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