Koontz signed on to an adjustable rate mortgage with Wells Fargo in 2003 after being told by her lender that payments would likely decrease over time.  Her initial payments were supposed to be $614 a month, but that number rose to $700 a month by the time her real estate deal closed in what she describes as a “hurried” process that offered little explanation of loan documents.  Over time, payments rose to approximately $980, which she could no longer afford, and in 2008 she began making partial payments.  Wells Fargo allegedly refused to process the payments and she was advised to apply for a loan modification.

Koontz was approved for a trial modification, was told that her mortgage payments would be adjusted to only $550 per month if she made all of her trial payments on time and in full.  She did as she was told by her lender, made all of her trial payments as instructed, but was disappointed to discover that her application to modify her loan was denied.  Koontz was assigned to a new representative who advised her to stop making payments while her claim was being processed.  She did as she was told and on April 20, 2010 received a letter informing her that her home was now in foreclosure.  Koontz filed suit against her lender and the case is still pending.

Timothy McFarlin, a real estate and foreclosure attorney in Irvine, CA says that he sees this scenario play out all the time:

“Lenders seem to have adopted a habit of making promises with no merit.  They say one thing to the borrower then turn around and issue a document saying something completely different.  Most people would never expect to be scammed by their lenders this way, especially lenders who have been around as long as Wells Fargo, but this seems to be happening more and more.  Borrowers can protect themselves from acts of predatory lending by requiring any promises to be documented.  When a promise makes its way into a contract, the borrower has a lot more fire power to fight the lender if they renege.    If the person making the promise doesn’t have the authority or desire to commit the promise to the contract, then had no business making the promise in the first place, and the borrower should walk out the door as fast as they can.”

McFarlin also advises borrowers who feel they have already been lied to by their lenders to seek legal assistance.  He also urges future borrowers to take as long as they need to review contracts and other mortgage documents, having them reviewed by an attorney if at all possible.  This way, he explains, disputes can be settled before the borrower is contractually obligated to begin making payments.

About McFarlin & Geurts:

McFarlin & Geurts LLP is a full service law firm representing both businesses and consumers in California and throughout the United States. McFarlin & Geurts attorneys possess a keen sense of the law and markets, along with an astute business background that is invaluable in bankruptcy and business litigation. The McFarlin & Geurts team includes five leading attorneys and supporting staff to assure clients that their needs are placed at the forefront of any engagement. Legal representation and counseling is critical in our complex modern world, and McFarlin & Geurts is driven by a desire for excellence and commitment to provide quality, personalized service with integrity.

Media Contact:

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(888) 728-0044

To learn more about services offered by McFarlin & Geurts Law Firm, visit www.McFarlinLaw.com.

“Debt settlement can be a valuable tool for many consumers, when practiced appropriately,” says Birnbaum. “My job, as an attorney and now president of TASC, is to ensure debt settlement companies have the information and tools they need to comply with state and federal consumer protection laws and to become leaders within the industry.”

Birnbaum will also guide TASC’s lobbying efforts at the state and federal levels, seeking fair and reasonable legislation to promote consumer protection and industry growth, simultaneously.

In addition to the debt settlement industry, Birnbaum also concentrates his regulatory compliance and defense practice in the areas of marketing and advertising compliance, for-profit and non-profit debt management services, sellers of travel and tour promoters, medical device filings and compliance, consumer trade practices, government investigations, and state and federal licensing of regulated businesses and promotions.

Birnbaum received his Juris Doctor from the University of Wisconsin Law School and is admitted to practice in Florida, Wisconsin, and the U.S. District Courts for the Western District of Wisconsin and Southern District of Florida.

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Established in 1981, Greenspoon Marder, P.A. is a full-service business law firm concentrating its practice in the areas of regulatory compliance and defense; commercial and residential real estate acquisitions and development; timeshare and fractional ownership development; resorts; community association law; zoning and land use; banking and real estate finance; commercial litigation; corporate tax and transactions; foreclosure and bankruptcy; labor and employment; immigration; tax, estate, probate and elder law; life settlement; disability insurance and insurance policy issues; family law; personal injury and malpractice litigation; and equine law. For more information, visit www.gmlaw.com.