Jun 29, 2009 8:15 pm US/Pacific
Call Kurtis: The Mortgage Modification Promise
SACRAMENTO (CBS13) ―
Joy and Tom Klepac don't want to move. But Tom's unemployed and their variable rate mortgage is going up. They say a radio ad from New Leaf Modification promised a loan modification…or your money back. Joy and Tom say New Leaf told them:
"They would send it to 2nd Chance Legal Services who they said was an attorney who was going to work on our behalf to help us with the loan modification."
The Klepac's say they provided all their information.
"We never met anybody we never saw anyone at 2nd Chance legal services. We got phone calls from them and emails from them."
But before 2nd Chance could get started they wanted payment of $4,475.00 up front. Joy used her credit card. The Klepack's say they were told not to talk at all with their mortgage company during the process.
"They made it very clear."
Six months went by and their mortgage was going up and additional $800.00 a month. Still nothing had been done to help them with their loan. They called their lender who said they never heard of 2nd Chance. That's when they called us, and we had another half-dozen complaints just like theirs. Tom wanted to know;
"Who do I talk to? Who do I sue? Who owns this business?"
We contacted New Leaf Modifications and spoke with Oleg who told us;
"We have an agreement with 2nd Chance and we only handled the marketing aspects, but broke off business with them six-months ago."
He went on to say;
"We feel bad about all these customers and will try and refund them our portion of the fees."
Then we found Mike Garcia, owner of 2nd chance. But wound up talking with his attorney David Boucher, who denied there was ever a money-back guarantee. We gave him a list of our upset viewers and he told us:
"My clients performed significant loan modification services to all the persons referenced."
We then checked with the Department of Real Estate and learned no one at New Leaf was licensed to do any loan modifications. Neither was Mike Garcia or anyone else at 2nd Chance.
Department of Real Estate Commissioner Jeff Davi told us:
"Unfortunately many of these people are not licensed. They're not complying with the law. They're just taking advantage of people. They get the money and then go down the road to the next person. They're not doing anything to help them modify their loan."
Now we learned the Department of Real Estate is investigating New Leaf and is going after 2nd Chance.
"We've filed an accusation a gainst the licenses associated wit h that company and we've also filed a desist and refrain order along with the department of corporations."
That means they have to stop doing business, but his department says they still are and have changed their name.
The next step, turning them over to the District Attorney for possible criminal action. Joy and Tom definitely want something done.
"We want our money back and we want them to stop scamming people. I mean if nothing else to not hurt other families."
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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