Tuesday, March 13, 2012

Suspected NYS Loan Mod Racket Finds Itself On State AG's Radar After Media Gets Hold Of Deceptive Solicitation Peddling Foreclosure Rescue Services

In Spring Valley, New York, The Journal News reports:

  • Rosemarie Jean Baptist thought a letter offering to help modify her mortgage was a godsend, until she grew concerned about requests for money. “I was looking for a modification for a long time,” said the Spring Valley woman, who estimated that she is about $22,000 behind in her mortgage payments. “When they told me not to pay my mortgage for three years and give them my bank account number, all this stuff made me suspicious.”


  • [State Sen. David Carlucci, D-Clarkstown] said a state law effective Dec. 19, 2010, requires property consultants to provide information about the availability of free state-funded services in their advertisements. The Green Law Group’s letter to Jean Baptist dated Jan. 12 did not contain such information. Additionally, state law prohibits loan-modification consultants from taking upfront fees.

  • On Thursday a firm representative denied inappropriate conduct. “We’re not preying on anybody at all,” said Randy, who hung up the call after he was asked for his full name. “We don’t charge to do a modification. We charge for foreclosure prevention.”


  • Jean Baptist said one of the reasons she called the Green Law Group is because she had unsuccessfully sought a loan modification from her lender. Peter Spino, manager of foreclosure services at Community Housing Innovations, which also offers free loan modification services, read the Green Law Group’s solicitation and called it misleading.

  • The Journal News sent a copy of the Green Law Group’s solicitation to the state Attorney General’s Office [...]. Spokeswoman Jennifer Givner declined to comment on the letter but noted that her office is aware of concerns raised about the Green Law Group.

For the story, see Mortgage loan-modification offer called 'suspicious'.

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