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09/29/11

Loan Scam Case Featured on Newsday: Borrowers win $68G award against loan modifier

Via Newsday:

"Nine borrowers have won a $68,000 judgment against a now-defunct loan modification company that illegally charged upfront fees -- and did little to lower mortgage payments.

State Supreme Court Justice John Galasson in Mineola trebled damages against Save My Home, which operated nationwide from Garden City and went by other names. Its employees told on-time borrowers to default, took money from those ineligible for federal loan modifications, and guaranteed lower payments, the suit said.

"I gave them $3,000 . . . and they didn't call me when I called," said Flushing taxi driver Mohammed Shukran, who took Save My Home's advice to default. "For one and a half years they were playing games with us."

The ruling is the latest victory in three unusual lawsuits filed this year by the nonprofit Lawyers' Committee for Civil Rights Under Law, a Washington, D.C.-based nonprofit, and Manhattan-based Davis Polk & Wardwell. It's a pro bono effort against Save My Home, its successor, Express Home Solutions, and another closed loan modification company, Homesafe America of Levittown, its successor businesses and employees. Court papers said the companies used the same tactics to get clients, then avoid them.

These suits are the first of several planned by the Lawyers' Committee[...]"

To read the full article, click here.