“We are asking the Court to shut them down.”
Another loan-modification shop, this time in conjunction with a law firm, has apparently run afoul of the law. Florida’s Attorney General, Bill McCollum, has sued Florida Foreclosure Law Center LLC and Lincoln Lending Services and said at a press conference:
We are asking the court to shut them down.
“Forensic analysis” fee was a fraud
Florida law bars foreclosure rescue services from charging an advance fee yet Lincoln Lending asked homeowners to pay a $2,700 “forensic analysis” fee up front, claiming that they were reviewing the loan for errors and violations that would help lenders avoid foreclosure. McCollum said the fee was a fraud, designed to skirt the law. They also lied when they told homeowners that a $999 “loan-modification” fee would be paid by President Obama’s stimulus plan. It won’t.
Lincoln Lending Targeted Hispanics
Some of my colleagues have told me they’ve seen Lincoln Lending advertising on South Florida Spanish-language TV stations, calling the ads “outrageous.” The AG’s office apparently agreed. Also, because Lincoln was allegedly feeding clients to a local law firm, it may be “indirectly” involved in the practice of law, violating Florida law regarding unauthorized practice of law.
Be careful who you hire to help you when you’re facing foreclosure.