According to San Diego’s 10 News, People’s First Financial has some satisfied customers and unhappy homeowners seeking a modification for a reduced rate home loan.  The 10News I-Team started taking a closer look at how this Mira Mesa company works after getting complaints from customers.  Lina Lopez is a mother of three whose husband and father was laid off from work. The I-Team went to Apple Valley to talk to her and another concerned client, Mark Walker.  Lopez says she paid $2,500 to People’s First Financial after being made a promise.  “She said, ‘We can help you lower your payments,’” says Lopez. “They were so easy to get a hold of but once they got my last payment, I got voicemails.”  Lopez says the company couldn’t help her, and when she tried to get her money back she was denied.

A similar thing happened to Mark Walker after he paid $1,500 to the loan company after he claims he was promised to get better interest rates.  He says he agreed to the modification agreement because the company promised to refund his money they were unable to modify his mortgage. He claims the sales associate informed him the company would also reduce their principal amount while getting a lower mortgage rate.  “We sent them the information they wanted, but we never back from them,” says Walker.  That’s no surprise, if you ask Jay Nichols. Nichols was Walker’s sales representative and left the company after five months.  “I was there and didn’t feel comfortable letting people go into foreclosure and not giving them their money back. If we fail, we fail, give the money back. The managers did not feel that way and I didn’t want to be a part of it,” Nichols says.  He explains the sales reps have nothing to do with the negotiating process. Their job is to get people in the door. From there, the client’s files go to a group of negotiators that work with the lenders to lower their monthly payments. Nichols says if the company can’t, it’s supposed to refund the customers money.  “What we’re selling them on the phone is we’ll help you save your home, you’ll pay us a lot of money to do that. If we can’t do that we will give you your money back,” Nichols says.  He quit after a few of his clients did not receive the refund they were promised.  “I sold the person on believing in the company and I didn’t know that it wasn’t going to happen,” he says.

When the I-Team went to get answers, Trevor Hutchison explained they never make promises to customers. He tells the I-Team they have many satisfied customers, and they charge people to “research and analyze” their situation.  “We look for solutions for them,” Trever Hutchison says. “They sign up with us for research and analysis to analyze what situation is, so we can poke and prod lender in the right direction or provide them with a refinance.”  He says people expect immediate results, but the process can take up to 120 days. 

Court records show the company has been sued by dissatisfied customers previously.  > For more information about a California Loan Modification Company, make sure you work with a foreclosure prevention company that provides at least a partial refund if the modification is not accepted by the lender and working with a foreclosure lawyer is suggested in case you need representation in court.  California homeowners need to be aware that the loan modification process is time consuming and can be confusing with quickly evolving foreclosure laws.  Loan modifications and legally negotiated mortgage terms do take time, so it is imperative that you choose a loan modification company that has the ability and willingness to work in the best interest of you the homeowner. 

The Bush administration increased its taxpayer bailout of a single Wall Street corporation, AIG, to a colossal $150billion because the initial $85 billion bailout failed. To put that into perspective, $150 billion is more than the entire budget of the state of California.  We also learned the Treasury Department, in the dark of night and without apparent legal authority, secretly changed a little- known tax law in order to give a $140billion windfall to banks at the expense of taxpayers. Meanwhile, thousands of home foreclosures continued to occur and ordinary citizens continued to suffer.  The last eight years provide strong evidence that trickle-down economics is intellectually bankrupt. There is little reason to believe the current administration’s trickle-down solution of showering Wall Street with vast amounts of taxpayer monies is going to fare any better. We need a solution from the ground up, one that helps not just Gordon Gecko the banker, but Joe the homeowner.

The root cause of the financial meltdown is the massive and continuing wave of home foreclosures. In California, we had 101,100 foreclosure filings in August, which equated to about one foreclosure filing every 30 seconds. Many Wall Street firms disintegrated after the mortgage assets they held became toxic and worthless because too many homeowners started defaulting on loans. If we can reduce the number of foreclosures on the ground, we will steady Wall Street, stabilize housing prices, keep families in their homes and start our economic recovery much sooner.  That is why I have authored a bill designed to force Wall Street to help the struggling homeowners on California Street. The bill, known as the California Foreclosure Prevention Act, is a bottoms-up solution that builds upon a recent proposal by Gov. Arnold Schwarzenegger.

The California Foreclosure Prevention Act contains three main points. First, the bill imposes a 120-day foreclosure moratorium on home foreclosures to allow time for the homeowner and the lender to try to work out a solution.  Second, a bank can avoid the foreclosure moratorium if it has a comprehensive loan modification plan based on criteria established by the Federal Deposit Insurance Corp. Part of the criteria includes modifying mortgage loans for borrowers in default so that approximately 38% of the borrower’s debt-to-income ratio goes toward paying the mortgage. Loan-modification solutions can include freezing interest rates, reducing interest rates, reducing principal or extending the term of the loan.  Third, the bill provides strong oversight and accountability provisions. There will be mandated reporting to the state Legislature and consultations with executive and legislative officials. Unlike the Bush administration’s taxpayer bailouts, not a single dime of taxpayer funds will be used to modify home loans. It is Wall Street firms and banks that will be paying for the loan modifications.

The California Foreclosure Prevention Act, if enacted into law, would be the first law in the nation to provide for a foreclosure moratorium unless banks provide a program for comprehensive loan modifications. Because states have virtually sole authority over the foreclosure process, this act would apply to both state- and federally chartered institutions. The hope is that other states will replicate this model to start forcing more loan modifications to occur.

Arnold Schwarzenegger continues his mission to help distressed California homeowners by proposing additional home mortgage relief in an effort to stabilize the golden state’s economy.  The California governor announced a new plan to encourage lending companies to modify existing mortgage loans as a way of preventing foreclosure.  Like Obama’s previous suggestions, Schwarzenegger proposed a 90-day moratorium for homeowners risking foreclosure. Mortgage lenders still would have the option for exemption in unique circumstances.

Several weeks ago, Schwarzenegger vetoed a Democratic bill to ban bad mortgage lending practices.  The governor’s new proposal comes in advance of his call for a special legislative session to address the budget gap and other issues.  Regardless of the budgets deficits, California homeowners need mortgage loan relief as most traditional refinancing options have evaportated.  Most California borrowers have watched the equity in their home disappear and many have adjustable rate mortgages that exceed their budgets.  The California Governor seeks cooperation from lenders and banks with mortgage loan modifications, forbearances and loan work-out agreements.

Foreclosure Lawyers of California recently announced expansion of their loan modification program for homeowners facing foreclosure for their California homes.  The number of foreclosures in California continues to explode. If you are facing foreclosure, consider the Foreclosure Lawyers of California because they have a record of proven results for homeowners seeking foreclosure prevention, mortgage restructuring and debt settlement.

According to loan modifier, Jeff Morris, “Homeowners need advice and affordable mortgage payments.”  Morris continued, “Borrowers are starting to realize that there are significant benefits that come with working with a law firm that specializes in defending families and their homes.”  Unforntunately, not all loan modification companies are looking out for the best interest of their client’s.  Attorney Matt McCormick added, “When you sign a retainer with a law firm like Foreclosure Lawyers of America you have unlimited foreclosure fighting resources, because we will do what it takes to keep the family in their house.”

The Foreclosure Lawyers’ foreclosure relief department has dedicated a team of loan modification professionals, attorneys and underwriters who boast of significant mortgage industry experience. Their team pledges to work diligently with your lender and/or invoke Federal Court Remedies to facilitate a solution that fits your budget and goals.

Run by the California Housing Finance Agency, a state agency that finances safe, affordable loans for first-time homebuyers, the program will be available in ZIP codes identified as the most impacted by foreclosures in California including Riverside, Stanislaus, San Joaquin and Merced counties. Areas in Los Angeles, Contra Costa and Alameda counties are also included.  Several mortgage lenders have agreed to partner in the program and offer sales prices on bank-owned properties at least 12 percent below estimated value in the identified ZIP codes.

The $200 million bond fund allocation is provided by the California Debt Limit Allocation Committee to fund the program at no cost to the state’s General Fund.  “This mortgage relief package will give many first time home buyers the opportunity to attain the American dream while also helping areas of the state that have been hit hardest by the mortgage crisis,” said State Treasurer Bill Lockyer, who chairs the Committee.  “I commend the Governor and CalHFA for their leadership and am pleased to work with them to help address California’s housing crisis.”

• Signed legislation to help protect homeowners by requiring a mortgage holder to provide a 30-day notice to a borrower prior to filing any default notice leading to the foreclosure. The new law also provides tenants of foreclosed properties a minimum of 60 days notice to move and requires holders of foreclosed properties to maintain the property.
• Awarded $73 million for affordable housing projects in Proposition 1C and Proposition 46 funds to help more than 1,600 California families rent or purchase affordable housing.
• Announced $69.5 million in permanent low-interest loans from the Proposition 1C housing bonds to jumpstart 14 affordable multi-family projects up and down the state, helping more than 1,000 California families and individuals realize the dream of an affordable rental home.
• Announced $5.6 million to help mortgage and banking industry workers laid off as a result of the subprime crisis make career transitions to high-demand jobs in other industries.
• Announced more than $72 million in federal HOME Investment Partnerships Program funds to provide assistance to first-time homebuyers, reduce the number of bank owned homes and increase the number of rental properties.
• Led a town hall meeting with U.S. Treasury Secretary Paulson in Stockton to discuss help for homeowners facing foreclosure.
• Joined the OneCalifornia Foundation to announce a bridge loan fund for homeowners facing foreclosure in Oakland.
• Awarded $8 million to community based mortgage counseling providers around the state to help avoid foreclosures.
• Launched a $1.2 million public awareness campaign to help educate homeowners about options that can help them avoid losing their homes to foreclosures.
• Announced an agreement with major loan servicers to streamline the loan modification process for subprime borrowers living in their homes.          
• Established the Interdepartmental Task Force on Non-traditional Mortgages to ensure a comprehensive and coordinated approach to the issues raised by subprime loans.
• Signed legislation to increase protections for Californians who own or plan to purchase homes and to expand affordable housing opportunities.