San Francisco Injury Lawyer Blog

Our San Francisco mortgage fraud lawyer represents individuals and small businesses harmed by financial fraud and mortgage abuses. As a financial fraud law firm, we are prepared to help consumers fight the big banks and financial institutions.

We have closely followed the national mortgage fraud cases, including those at the state level. This week, both California and New York agreed to enter into settlements for the state claims with mortgage lenders. The San Francisco Chronicle reports that several major banks including Bank of America, Wells Fargo, JP Morgan Chase, and Citibank have agreed to the proposed $37 billion settlements. The issues in the dispute include improperly lowering home mortgage principles, refinancing, “robo-signing,” failure to verify documents, and other decisions related to personal mortgages. There are ongoing negotiations regarding liability releases and other states may join the settlement in the coming days. Under the proposed settlement, California would receive $430 million. The providers would also be required to reduce loan amounts for over one million households nationwide. If enacted, the deal would be the largest single-industry settlement since a 1998 multistate tobacco agreement.

According to the Chronicle, more than two million California are underwater on their mortgages. Individuals need to be aware that California mortgage fraud can be the subject of personal civil lawsuits in addition to the state actions. The Federal Bureau of Investigations has a dedicated web site that can help consumers understand this complex legal arena. The FBI notes that mortgage fraud resulted from unsound underwriting processes and weak loan approval standards that result in mortgages being improperly extended. Mortgage fraud can take many forms including fake loan applications, fraudulent supporting paperwork, inflated appraisals, kickbacks, straw buyers, and false or stolen identities. The FBI compares mortgage fraud to a bank robbery that goes undetected. The FBI notes that over 2,700 claims were brought through the year 2009. The cases resulted in 494 criminal convictions, $2.5 billion in restitution, $58.4 million in fines, and $7.5 million in recoveries.

Individuals considering a mortgage or a renegotiation should carefully research their providers and be suspicious of promises that seem to good to be true. All mortgage promises should be made in writing and contain detailed information about the lending institution. The California Attorney General and Better Business Bureau can provide useful background information on mortgage-related companies. Borrowers should also make sure all documentation is complete and should never sign documents with blank lines.

Those who are already in a mortgage that they suspect may be fraudulent should reach out to skilled legal counsel such as the team at The Brod Law Firm. You may have a claim against the bank or lender for financial fraud or a malpractice claim against the attorneys involved in closing your loans. Do not let the wrongdoers win – seek the justice you deserve and the compensation you need. Civil lawsuits can exist alongside the criminal charges and a civil case can help you recover from the financial damage of a fraudulent mortgage. Our San Francisco financial fraud lawyer is available for a free consultation to discuss your unique case and your legal rights

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Our economy continues to leave many homeowners nervous about meeting their mortgage obligations and fearing the loss of their home. Sadly, as both The Sacramento Bee and The Sacramento Business Journal reported this weekend, it appears that unscrupulous individuals have taken advantage of these tough times for their own financial gain. Alongside the criminal investigations of such deplorable tactics, Sacramento victims of bankruptcy fraud should reach out to experienced Northern California mortgage fraud lawyers for help recovering their financial loss.

In the case reported in both papers this weekend, a federal grand jury has indicted five people: Jesse Wheeler (34, Roseville), Bernadette Guidry (43, Irvine), Cynthia Corn (58, Oakland), Brent Medearis (45, Modesto) and Jewel Hinkels, also known as Cydney Sanchez (61, Los Angeles). Court filings cite a network of companies, including Horizon Property Holdings LLC and JW Financial Solutions, that purportedly offered to help homeowners avoid foreclosure and save their homes. The companies and individuals allegedly marketed their services to homeowners who were struggling to make scheduled mortgage payments on their homes. Authorities suggest the companies and individuals promised to negotiate mortgage sales or payment reductions that would help the distressed homeowners. Per the charges, the defendants did not deliver on these promises. The indictment also references fraudulent bankruptcy petitions filed by the accused that may have allowed them to collect more fees by prolonging the foreclosure process.

The motive for these crimes appears to have been financial. For the services they claimed to provide, the companies charged substantial upfront and monthly fees. Prosecutors suggest that more than 1,000 distressed homeowners were charged over $5 million in fraudulent fees.

At the Brod Law Firm, we are Sacramento victim’s rights attorneys. Our experience includes personal injury cases but we can also help victims of financial fraud in Sacramento and throughout Northern California. It is disturbing to see corrupt individuals taking advantage of our difficult economic times and preying on vulnerable residents of our area who are trying to meet their obligations and remain in their homes.

We urge homeowners to exercise caution to avoid falling victim to mortgage fraud schemes. The Office of the Attorney General notes that homeowners should avoid any foreclosure consultant who requires up-front fees, which are prohibited by law, and should not transfer or sell their home to a company that claims to be a foreclosure rescue organization. It is also important to review all notices from your lender and to only make payments directly to the mortgage holder. If you do seek assistance with mortgage payments, carefully read and review all financial forms in advance. Some mortgage fraud has involved companies claiming to present loan modification documents that actually transfer ownership of the home, documents later used to evict the defrauded homeowner.

As with injury cases, victims of these deceitful crimes need to be aware that the criminal system will prosecute wrongdoers but may not always fully protect the financial interests of those harmed by the crimes. If you believe you have been the victim of mortgage fraud, you should contact the Attorney General’s office to report the crime and then reach out to a skilled attorney for help in recovering your losses. At the Brod Law Firm, we are prepared to help victims of mortgage fraud. Please contact us for a free consultation.

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