My personal hell known as loan modification.
84Loan modification is a scam.
I am sitting here, stunned and with a huge knot in my stomach. It's the kind of knot that is down low in your abdomen and it makes you catch your breath. It comes when you finally acknowledge and accept the full realization that all your fears have come true. No matter how you try to deny it, the cold hard fact is looming over you. The knot is made worse because I denied my initial gut instincts and trusted the star of late night informericals, the self-proclaimed "savior of homeowners" an attorney with a past as a scumbag and a future as an inmate in county jail. With any luck.
I dial the phone number to his office over and over again, getting the same lame recorded message "due to increased call volume we are experiencing extended time in which to return your calls. We are unable to speak with you by telephone, but rest assured your case is important to us and we are diligently working to resolve your loan modification. Please direct all inquiries to clientservices@blowme.com, we will respond in 14-21 business days". WTF?
My hand is shaking and in it I hold a Certified letter from the bank saying foreclosure proceedings will commence in 30 days if I don't bring my mortgage current. What? But I retained an attorney, I paid him $3,300 up front. He assured me verbally that my loan modification was a "slam dunk". He also told me "don't pay your mortgage, the companies don't work with us if you are current, you need to be at least 3-4 months behind".
I frantically dial the number again--same recording. It's not going to change.
Reluctantly, I call my mortgage company. They tell me (as I suspected) they have never heard of my attorney. Never did they received any of the voluminous paperwork I spent days getting together and a small fortune faxing to my attorney. I learn I can re-send everything to my lender, but foreclosure will not stop. I say " But I was told by my attorney if I were negotiating a modification foreclosure would be stopped" I am told "oh no that's not true". Why should I be surprised.
I call the State Bar of California. I am told to file a formal written complaint and that "Attorney Parsa is being investigated and suspension of his license is imminent". My hand shakes more, my neck tightens and immediately I feel my head hurt. Why is this happening?
I dial the attorney's phone number again. I still can't believe there's no "live" person to answer.
I google the attorney's name, suddenly there are several "hits" leading me to posts about this attorney and all are negative. Where was all this information months ago when I researched James Parsa?
I visit one of the many complaint sites and learn I am not the only one scammed by the Parsa Law Group. Introduced through mutual suffering, I meet Scott from Irvine. Poor man was duped worse than me. I learn Scott retained the firm to have his first and second mortgages modified. I almost did that too, but decided to see how it went with just getting the primary modified. Scott's experience was the same as mine. He too was told by the Parsa Law Group that his loan modification was a "slam dunk" and his completing of paperwork only a "formality".
I also learn about Gilbert, an elderly man with 2 dogs he adores, worried that he will be kicked out of his home, with no where to go and frightened to lose the dogs he loves so much. I want to help Gilbert and Scott, but with so little energy, I can't even help myself.
Of interest, I also learn Mr. Parsa had a case pending in criminal court having been arrested for having sex with a minor. Great not only is he a liar but a pedophile too. Anyone caring to read up may access the case at this link. (http://members.calbar.ca.gov/courtDocs/09-C-12545.pdf.)
I dial the attorney's phone number again. I can't even leave a nasty message. So I decide to send an email and unload my anger. Better to vent on them than keep it bottled up.
Scott sends me an email saying someone showed up at the Parsa Law Group threatening them with a gun and the entire office has been shut down, no one there. I don't condone violence but that's one way to get your point across for sure. Too bad in situations where people take the law into their own hands, all to often it's innocent people who are hurt, not scumbags like James Parsa who really deserve it.
I am lost and that's where I was before hiring the lord and savior of homeowners, except now I have $3,300 less in my pocket. I struggled to keep my agreement with Mr. Parsa. I kept my part of the deal, that's more than I can say about Attorney Parsa.
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THANK YOU. I called and was given the 3rd degree about how I found out she reps Parsa. Said an thru anonymous email. We shall see if the attorney calls back.
Also Jaime Salcedo from the State Bar is handling some of the investigation, anyone screwed by parsa may call him at 213 765 1084.
BIG THANKS AGAIN FOR THE HEADS UP!!
Re: the Costa Mesa police, I called them days ago and finally the other day rec'd a return message from someone named Melanie who said "we are not taking anymore reports as we have thousands of victims" she said to make a report with the FTC (Federal Trade commission) however, I've made reports there before and it's usually against collection agencies. Don't think the FTC is the proper agency. I've made a report with the Jerry Brown's office--State Attorney General.
I will call the OC DA.
Here is her e-mail: epansky@panskymarkle.com You can find it on the State Bar website. http://members.calbar.ca.gov/search/member_detail.
You can find her information listed on the complaint on James Parsa's attorney profile on the state bar website.
I don't know that she can help you but at least it is someone.
Also, file a complaint against James Parsa with the State Bar of California. Fill out the paperwork with the Client Restitution Fund to get your money back. It may take awhile to get it, but you should get it.
It offends my sensibilities as an Attorney in California that Banks,brokers, lawyers and their agents have either consciously or unconsciously aided in the exploitation of people. Unfortunately, the State Bar was not capable of handling supervision of all the attorneys who have acted like blood suckers when it comes to loan modifications. I've recently wrote a couple of pieces regarding these issues. Hopefully, this will be remedied in the near future. Recent developments have shown that things may be changing when it comes to supervision and discipline since the Bar publicly released the names of at least 16 Attorneys in California (before conviction or a determination of liability) who have been charging fees to do very little to no work at all. Its sad that many laymen don't realize that even if most agreements say "non-refundable" that usually does not relieve the attorney of his or her obligation to do the work.
Thank you for your comments. I have written more on another blog site about the status of my experience and those of other victims http://rebecca-boyle.blogspot.com/ Thus far, none of the government agencies who are there to help consumers have done anything. I am looking for an attorney who can represent me and possibly others in some sort of suit against Parsa Law Group. Would the California Consumer Protection Act apply? I think it applies against Loan Mod companies but what about an attorney? Doesn't Parsa have to prove all the "success stories" he boasted about in his infomercials?? I am positive Parsa has tons of money. I read he was part owner of another Loan Mod company that is publicly traded. I also know that he's scammed homeowners in Nevada, just got an email from someone there--Parsa was also licensed in Nevada and YES I've filed a complaint with their State Bar as well.
Ask Me - There is a way out to your issues and it is called a Short Sale if you have a buyer who is interested in your home. You do NOT need to foreclosure on your home if the price is set right. I work with people in the same situation you have - regarding your certified letter. I am very sorry that you paid 3,300. I own a Title company and Short Sale company. If you want to talk please email me and I will do everything in my power to help you out.
Not currently interested in a short sell. I live in the beach area of Southern CA and unlike most of Los Angeles, my house really has not depreciated. It's still worth more than I owe by about $200,000. Additionally I have 1 child left at home who will graduate next year and don't want to uproot her.
Not sure what you mean by "certified letter"? I retained a loan modification attorney who has practiced law in CA for 10 years but went off the deep end. He took a retainer fee from me and thousands of other clients, then was closed down by the State Bar and suspended from practicing. I am now back to square one, working with my lender for a modification in the terems of the loan i.e fixed as opposed to adjustable.
Thank you for your response.
Since your home is not "underwater" you should be in a more favorable position to obtain a "loan modification". However, a loan modification may not be the most appropriate remedy for you or anyone else since this always depends on your particular circumstances. As far as short sales go, in California, any true waiver of amounts owed may result in you being hit with a tax bill at the end. I have a few blogs on this site that may interest you. In any event, its going to be very difficult to get the regulatory authorities to deal with these matters - I hate to say this but most of my success in this area has come after my clients decided to litigate and go to court.
Jusluv2write
If you read my blog you will see that I totally agree with what you are saying. Success in loan modification usually comes only after a homeowner decides to litigate. Having understood this, I retained the Parsa Law Group to represent me in a loan modification only to be scammed and taken advantage of by them MORE than I was by my mortgage company.
Thanks for you advice, but I was already well aware of the fact that I could do a "short sale" but did not want to take that route because, as stated I am not upside down on my house AND, I was well aware that retaining counsel and pursuing a modification legally was the best way to get my lender's attention, however, IF you read my blog, I was ripped off by my attorney, thus title of my blog "my own personal Hell known as Loan modification".
Thank you but I am not interested in your services. I think I can fend for myself just fine.
I believe that you realize now that I was not offering my services but the following is my response to your comment on my blog:
Every matter requires an individual assessment so I am not certain that I could help your group or each individual in your group. Second, I don't want to violate any rules of this valuable Blog site by seeming to solicit if I contact you directly via email. Can you give me some guidance from the governing "rules" of this Hub community since I am new to it. Assuming that I would not be in conflict with any rules then I would not mind reviewing some matters for you and/or your group.
JUSLUV2WRITE
So sorry. I misread your post. Of course you were not offering your services, but merely offering suggestions. My mind is clouded by frustration, fear, anger and so many other things. Any help you can offer is very much appreciated. I know other victims of the Parsa Law Group are reading my blog as I have communicated with them. We are all so lost and not sure of whom we can trust or which direction we need to go. It seems that every road we take to straighten out our situation is just one lost winding road that leads to no where except another person trying to take advantage of our situations. Any ideas? I really wish there was a bailout for the common person.
Would he be held liable for any clients suicide?
He should be. I think he should be held civilly liable for all the pain and suffering he has inflicted upon his clients. For many of us "Parsa Victims" his incompetent advice from his non-attorney staff has placed us in a real bind with our lenders. Parsa's slimy customer reps (former slimy mortgage brokers) advised me and other to "not pay our mortgages" as that would put us in a better negotiating position. What it did is make it appear we were blowing off our lenders since Parsa's staff NEVER contacted our lenders, this has put many of us in a bad spot with foreclosure near.
I am seriously contemplating Chapter 13.
Askme:
That's exactly what my representative told me to do as well. I went from being 30-days past due to 90 because of her "advice". Now I'm struggling to keep my house.
And like you, when I finally contacted my lender directly, they told me they hadn't heard from my attorney in many months.
I've been going through this modification process since contacting Parsa back in February! Those bastards just kept stringing me along, month after month.
Now I'm not sure, because I ended up defaulting on the agreement with my bank (thanks Parsa!), I may not even be able to get back into the modification process at all.
So now I'm back to square one, $3400 out the window, deeper in debt and further behind on my mortgage than when I started.
Hi MeToo: I just got back from an appointment this morning with a BK attorney. We are going to have to file chapter 13 to save our home. Once we file with the court, it stays any further proceedings. Our attorney is going to ask the court to separate the mortgage from the huge amount we owe that we are behind because of Parsa's incompetent advice. the huge balance will be paid out over 5 yrs. We just want to get back on track and then maybe sell the home in a few years.
One thing you need to keep in mind, anything you were told by Parsa and his slimy sales people has to be taken with a grain of salt. These people lied about everything. It could very well be that you would have never qualified for a loan modification even if Parsa had continued to practice law. I have a feeling they would have lead many of us down the path right up to the very end and we would have been denied a loan mod. Also, Parsa's people told me many times "since we are in negotiations for a loan modification, your lender cannot start any foreclosure process. They cannot issue a default" Well...the BK attorney says that is crap. I urge you to get yourself to another attorney, one who does bankruptcy and loan modification. Let him/her take a look at your financial situation.
Why didn't you call your mortgage co. and tell them you need to arrange a loan modificaion? This is something you can do yourself! Most banks want to work with you these days. I have friends who've done this. Also you can always redeem you home right up to the day it's about to be auctioned! I did this one time many years ago. I don't know what all this "litigation" crap being discussed here is all about. Sounds like wolvish attorneys trying to get some work. When you call your mortgage co., ask to speak to a work-out specialist and tell them everything truthfully. Believe me, they don't WANT to take your home back. They're oveerwhelmed with inventories of foreclosed properties.
Hi BookFlame. Good point, why didn't I call my lender and just work out a loan modification. This blog leaves out what had transpired between me and my lender prior to my having the NEED to retain an attorney. I was in such shock and fear about being scammed by the attorney I trusted, that I felt for the sake of getting my point across about what happens when you fail to trust your gut, I left out all the prior events. Believe me I did TRY to work with my lender and continued to try working with them immediately upon learning that the attorney I paid for help was going to be anything but helpful. My lender is Indy Mac Bank, the one that went under and was taken over by the Feds. IndyMac was then sold to a group of "investors" mainly George Soros, raging liberal billionaire and Michael Dell, computer geek billionaire. These 2 made one hell of a sweatheart deal with the FDIC and because of that deal, IndyMac is not motivated to modify anyone's loan. IndyMac is infamous for foreclosing at a predatory speed on almost ALL their customers because they have nothing to lose. I've blogged about that under my newest blog "IndyMac Bank, One West Bank and their new owners all need to go to Hell" That blog is Part 2 of my Personal Hell Known as Loan Modification. Please check it out.
I feel for you Askme...but your blog left me gasping for breath. It was hilarious, I'm not laughing at you I'm laughing with you. I'm in the middle of a loan modification from hell with my original lender. Believe me it is no laughing matter I feel your pain. You've received some great advice from those who have responded to your plight. I was threatened with F/C, but it's because my lender doesn't know their A$5 from a hole in the ground. I tracked down the address for the VP of the accounts division via the internet and he now has his personnel working to straighten out their lousy accounting system to clear my account. Best of luck and hang in there.
pmccray, glad to provide some comic relief. Hopefully I will be laughing all the way to the bank once my lawsuit against one James Parsa and IndyMac One West Bank, George Soros and Michael Dell is settled.
Good luck to you in your loan modification attempts.
i was scammed once by a loan modification company. at that time i dont knew anything about loan modification but now i came to knew about loan modification
Thanks for sharing such a good info on loans
loansbuzz.com
AG80 says:
6 weeks ago
Contact his attorney. Her name is Ellen Pansky. She at least is a warm body to talk to.
Parsa needs to have criminal proceedings brought against him. Contact Costa Mesa Police Department and speak to Detective Sheila Cannon at 714/7545294.
Contact the Orange County DA. Joe D'Agostino is the head of economic crimes.