Mortgage loan modification scam?
I received foreclosure notice on June 05 2011 (Bank of America). Couple days before foreclosure date, I received letter from XXX counselor (State of Maryland). They told that they not a lawyer but real estate lawyer will work with them for my case. They told me that they could
1. Stop the foreclosure sale until the bank has provided all required documentation, which they may not have
2. Stop bank foreclosure fraud
3. Ensure that the bank has the authority to foreclose
4. Perform a forensic audit on all mortgage documents.
5. Provide strong incentive for the bank to modify your mortgage and keep in your home.
They ask me to pay flat fee of: $ 1,250.00 for forensic loan audit and $ 2,500.00 for their service. I paid.
They have postponed foreclosure sale seven times since June last year.(It has bee almost one year). Last month I found out they changed their name from XXX counselors to XXX Alliance. Fortunately they answered my phone and same people worked for that company. I also found out that they haven’t requested forensic loan audit yet. (for one year). I couldn’t trust them any more. Last week I went to their office to tell them to return my money back. I tried to be honest. I offered them I want $ 1,250.00 for audit and $ 1,500.00 from your service (Told them to take $ 1,000.00). Audit was not done and I haven’t had any result that they had promised. I thought it would be fair. They told me that they postponed foreclosure seven times. They want to return $ 1,250.00 and $ 500.00 form their service (keep $ 2,000.00). What do you think? Should I give up $ 2,000.00?
They received my document (for loan modification) and called lender to postpone foreclosure. That was what they did. I think I could postpone foreclosure sale too. I don’t know…