Tuesday, July 14, 2009
Lawsuit Filed Against Mortgage Loan Modification Company for Deceptive Practices
Santoya Financial Company, LLC, a Phoenix, Arizona-based mortgage loan modification company, and its owners Thomas Montoya and Robert Sanchez have been sued for engaging in deceptive practices.
The lawsuit alleges that since March of 2009, Santoya Financial falsely advertised its services as being endorsed and approved by the federal U.S. Department of Housing and Urban Development (HUD). According to court documents, Santoya offered its loan modification services for an upfront fee of $1,199 plus the equivalent of one month's mortgage payment. The company claimed that because its program was backed by the federal government these fees were refundable if the loan modification could not be completed. Santoya also allegedly represented that it would provide HUD-approved counseling to consumers as part of its loan modification services, when neither Santoya nor its associate organization, Partners in Charity, were approved by HUD to provide foreclosure avoidance counseling.
The lawsuit also alleges that Santoya falsely told consumers that fees paid for its loan modification services would go to Partners in Charity, a charitable organization. The lawsuit further alleges that Santoya failed to disclose to consumers that any actual negotiations on consumers' behalf would be performed by independent entities for which Santoya had no responsibility.
The lawsuit alleges that Santoya's actions violated the Arizona Consumer Fraud Act and the Arizona Credit Services Act, by:
● Falsely representing the company as being endorsed by HUD.
● Falsely representing that it and an allied company, Partners in Charity, were approved by HUD to provided foreclosure avoidance counseling to consumers.
● Failing to disclose the limited nature of its services, which was simply collecting and forwarding clients' information to independent entities for whom Santoya had no responsibility and who had not complied with Arizona law regulating loan modifications in this state.
● Failing to provide consumers with information statements and contracts required by law.
● Charging clients upfront fees without having obtained a surety bond.
In the lawsuit, Arizona Attorney General Terry Goddard requests that the court order Santoya, Montoya and Sanchez to:
● Refrain from violating the Arizona Consumer Fraud Act and the Arizona Credit Services Act.
● Pay full restitution to all homeowners.
● Pay the State of Arizona a civil penalty of up to $10,000 for each violation of the Consumer Fraud Act.
● Reimburse the Attorney General's Office for its cost of investigation and legal action in this matter.
Attorney General Terry Goddard filed the lawsuit and recommends that homeowners who are in or facing foreclosure seek assistance promptly from their mortgage lender or servicer or a government-approved housing counselor. Federal, state and local governments offer numerous free resources for distressed homeowners, including the Arizona Foreclosure Help-Line at 1.877.448.1211. For a list of HUD-approved housing counselors, please refer to HUD's website at http://www.hud.gov. This lawsuit is the latest action in Arizona Attorney General's crackdown on mortgage loan modification businesses that engage in fraudulent advertising and other deceptive practices.
Additional tips and resources, including the Foreclosure Information Workbook created by the Arizona Foreclosure Prevention Task Force, are available on the Attorney General's Web site, http://www.azag.gov. This workbook not only describes the tactics used by deceptive firms but also provides helpful examples of common letters, forms and filings for attempting to modify a loan or otherwise avoid foreclosure.
For additional information, contact Anne Hilby at (602) 542-8019.
mortgage fraud
Hello:
I want to know if there have been any legal actions or fraud complaints against JW Financial (based in Ca) and Preferred Financial Solutions (based in Santa Rosa, Ca). They promise to buy my loan for 20 to 30 cents on the dollar from my lender, and give me a new loan at 15% less of market value of my home. They charge $3500 up front.
Thanks
Posted by on 07/15 at 03:36 PM
Great Post..
Posted by on 07/17 at 02:24 PM
I got a loan mod aproval from first Franklin but was not what they told me so I did notsignit and also defeuded by lawyer pls responce thanks
Posted by on 07/21 at 03:31 PM
Thanks for the wonderful information- just wondering if anyone else has had any relevant experiences to share
Posted by on 08/31 at 04:35 AM
the same situation has happened to us we were decieved by modify your mortgage anyone have info on who the attorney is for litigants so i can join
Posted by on 09/23 at 01:57 PM
JW Financial is absolutely a scam. They may have been sincere in the beginning however they haven’t been able to accomplish any of the promised actions in their contract. It has now been over a year for many of the patron who shelled out $3,500, including me, for their false promises. JW Financial Solutions and Jesse Wheeler have refused to address any of us and has denied any of the guaranteed refunds. His company closed their Roseville, CA locations and issued a letter on their website that they are now working out of a virtual office. An office worker told me this was due to the many threats they received. I would urge anyone who is a victim of Jesse Wheeler and JW Financial Solutions to file a complaint with the Ca State Attorney General’s Office, the Fair Trade Commission, FBI Internet Crimes Division, the Better Business Bureau, State Board of Real Estate and anyone else you can think of, I have. Good Luck
Posted by on 10/20 at 07:34 AM
JW Financial solutions sucks. They took me for 2500 and will not return my refund either. I cant even get a hold of them. I filed a complaint with the attorney generals office and the FBI. Im not holding my breath though becuase im sure Ill never see that money again. I just pray I find Kani Narretto or Jessie Wheeler on the street someday, because they are the biggest scam artist ever.
Posted by on 10/31 at 02:44 PM
Modify Your Mortgage will take your money and run. They will promise you all that you want to hear and not go through. Ryan Newman the owner is a joke and rude. Beware.....
Posted by on 11/03 at 05:52 PM
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
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Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
