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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 Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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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.
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
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
i was evicted from my home jw financial
solution from roseville.sacramento,calif.
is a total scam took advantage of the
people trying to save their homes i put up
over 9K for the service to take care of my home
only to find out i was locked out of my home they sheriff threw out my daughter when she was home sick at 16 yrs old had to place to live.i will do everything in my power to stop this
scambag jesse wheeler is the guy who is
responsible
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
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 
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