Miami Loan Modification Company Targeted Hispanic Residents

Bill McCollum, the Florida Attorney General, filed suit yesterday against Lincoln Lending Services LLC, a loan modification and foreclosure-rescue business, and its owner, Rita Gomez. The suit claims that the company violated state laws on deceptive and unfair trade, defrauding approximately ten homeowners.

According to the complaint Lincoln Lending Services charged homeowners $2,700 as a “forensic analysis service” which would find errors, misrepresentation, or misinformation on their original loan or closing documents. The borrower then signed another contract for the loan modification which would charge a $999 fee that would be due if the loan modification was completed. However, the 2,700 fee was being charged to circumvent the existing state law which prohibits loan modification or foreclosure-rescue firms from accepting payments up front. Clients were also told that the $999 loan modification fee would be paid by the bank as part of President Obama’s stimulus package.

Weston resident Carlos Ruiz said he paid Lincoln $3,500 earlier this year to save his home. Ruiz, who worked for a pest-control company, fell behind on monthly payments after he lost his job. “I still lost my house,” said Ruiz, noting he signed contracts to stop the foreclosure and modify his loan.

To read more about loan modification firm targeted hispanic residents, state lawsuit claims head on over to the Sun Sentinel.