Bill                                  Bolton                             Governor        
House Loans

Stop the House Loans Deception [06/10]

After hearing about "Stop the Car Loans Deception" section, someone wrote us about having a house loan problem. 

I have had similar problems with buying a used car and lot of it has to do with not knowing the law, for which the sellers obviously do know the law.  In my case, I would fall into a legal pitfall and the seller would gladly steal from me, or it seemed. 

Here is the letter stripped of writers identity:

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"Dear Mr. Bolton,



"I came across your campaign ad on TV and saw that your platform was to promote citizen capitalism.  [I go to a prestigious college.] I am in desperate need of assistance so was hoping you could help me. Over the past year, I have been working to save my house and the house of a close friend through the Home Loan Modification (HML) Program. We both live with our families in modest homes. When I first realized I could save my home through this program, I researched different avenues of assistance and came across [xyz law firm.] After contacting them, I was told I qualified for the Home Loan Modification Program and that they could assist me with negotiations with my bank ([zz] Bank). Since my close friend does not speak English well, I also contacted them on her behalf and was told they could assist her family as well (her bank is [xx] Bank) .

"I paid them $2,000.00 and my friend paid $2,000.00 for their services. We started the application process for the HLM in March 2009, began making our modified house payments to our banks in December 2009, and then suddenly (May 2010) were told our applications were rejected by the banks and we could not save our homes.  xyz Firm then requested that we pay them $3000.00 more (each) in order to appeal this decision.  We do not have any more money to pay this [firm] (who honestly did not do much to assist us with the initial process at all) so I have been told we will lose our homes.

"I was becoming wary of this [firm], so started researching their company and have come across numerous complaints saying they are actually scam artists and are ripping off people across the nation who are desperate to save their homes and need assistance to do so. I am now trying to work directly with our banks, but am extremely concerned that after paying both the [firm] and making our modified payments to these banks, we will still lose our homes.

"My friend has four children and I have two, so the thought of suddenly losing our homes is extremely frightening. I do not know what to do at this point- I feel like I have been scammed by both the United Law Group and my bank for the last year (having made numerous payments to both) and am still going to be homeless at the end of this fiasco.

"If you could offer any advice or assistance, I would greatly appreciate it. Also, I feel that someone needs to be looking into firms such as the [firm] because they are profiting off of people’s misery and taking advantage of us who already are struggling to get by.

"Thank you for taking the time to read this. [.....]

"Sincerely,"

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Again, our laws will usually protect the sellers that are providing the service because the buyer does not know the pitfalls.  [06-10]