Hispanics Being Victims of Foreclosed Loan Modifications

surfside_condos_miami

It is evident from a lawsuit that the Hispanics have been victims of foreclosed loan modifications. Bill McCollum the Attorney General of Florida brought charges against a Miami based company for targeting specifically the Hispanics who were facing foreclosure. The firm wanted extra fees and charges before loans could be modified.

This civil suit was filed in the Circuit Court of Miami-Dade County against one Lincoln Lending Services LLC that deals with loan modification and foreclosure rescue. Its owner was Rita Gomez. The suit alleges that the firm transgressed the laws of the state regarding deception and unfair practices. In so doing the firm had cheated 10 owners of residential houses. McCollum wants the court to give orders to close down the firm. McCollum said, “Our citizens should not be targeted when they are in a time of financial distress.”

Rita Gomez did not respond calls reporters of Sun Sentinel had made trying to contact her over the mobile phone as well in her residence.

According to various complaints coming in from consumers, Lincoln Lending asked the homeowners to cough up $2,700 for services pertaining to forensic analysis that would find out discrepancies in original mortgage documents or in the closing papers. This strategy was used by the firms to go around the laws of the state that prevents foreclosure rescue companies from taking payments until completion of the services.

The homeowners were made to ink a second contract for the modification of loans. In it was stated that the company would have to be paid $999 after completion of the services. But the borrowers were informed verbally that this money would in reality be paid by the bank being part of the Obama scheme of stimulus funds.

Carlos Ruiz, a resident of Weston said that few months ago this year he had paid the firm $3,500 in the hope of saving his house. He was employed in a pest control company and due to circumstances defaulted in his payments. But even after giving the money he lost his home despite the assurance that the loan would be modified and the mortgage payment amount reduced. With no hope in sight he now packs up belongings with his mother to shift to the shelter of a relative’s home.

Scrutinizing the papers it appears that the firm made it a point to target the weaker section of society in that region – the Hispanics.