Loan Modification Fraud

by admin on March 10, 2009

With the explosion in loan modifications over the last year, there are a lot of new people getting into the business. With the US economy not faring well, there are not a lot of growth businesses and loan modifications are a bright spot right now. With all of this new money, there are some unsavory businesses starting to do loan modifications.

You need to protect yourself if you are entering into an agreement with a company to help you modify your loan with your lender. If you are required to put a down payment with a business, make sure that you have a signed contract. There are many examples of people that have put up a couple thousand dollars and had a business or individual disappear and not return their money. If you have a signed contract that stipulates the services that will be performed that will help protect you in the event something goes wrong.

It’s important to ask for references on any company you are considering hiring. Hopefully you can get a few positive references as that will go along way to proving a company knows what they’re doing.

If you really think a company has perpetrated fraud then you should contact the attorney general in your state. You can also file a complain with the Better Business Bureau and they will log that.

You may also have fraud committed by your lender during the course of your loan modification. If you think your lender did something unethical or illegal, you need to get professional counsel. There are lawyers that will review your case and can let you know if you have any recourse against your lender. You can also contact NACA at as they offer housing assistance to certain people who qualify. Protect yourself and understand what you’re getting into as there are a number of ways you can get in trouble as you try and modify your home loan.

{ 5 comments… read them below or add one }

Gina July 9, 2009 at 3:09 pm

I was worried about my home loan. I tried calling my mortgage company but kept getting the run around. I finally called a law firm and had great results. They actually got my principal lowered which helped in lowering my monthly payment. If you’re in Southern California, I’d say put your trust into the Parman Law Group of Irvine,CA.

Daniel Rodriguez March 1, 2010 at 9:48 am

Parman Law Group is running a scam. They took $3185.00 up front. We got no where. They never communicated. I had to chase them every step of the way. They then claimed to get a settlement which was double my payment! I have now started communicating with the bank, and they are telling me that Parman and the bank have never had such a communication or agreement. Furthermore, Parman enrolled me into and I have learned I got ripped off there too. The money they were collecting from me was only going to them. Out of $900.00 per month, only $85.00 was going toward my debt. Now I was served a summons from one of the creditors. I don’t understand how Mary Parman, owner or Michael Smith, CEO can sleep at night. Very bad.

Tish Fitch March 21, 2010 at 5:31 pm

Definitely Parman Law Group is running a scam, both through their Law services and their debt free company PriVest Financials.
They initially took care of my 1st mortgage modification and got that reduced, but claimed after working on my 2nd Heloc mortgage for over 6 months and getting no where with Bank of America, they just dropped the ball. Then when I questioned them about where they were in the process with it, they told me that they never should have been working on it because I didn’t pay for a second mortgage to be modified. When I have emails confirming that the loan mitigation officer at Parman Law Group was indeed working on it but getting nowhere, it just one day went away. Mary Parman, owner, of Parman Law Group sent me an email stating that they never were working on a second mod. for me and that the contract did not state that they were, so I should have known better. When infact the Loan Mitigation Officer was keeping in touch with me up until the CA SB94 law came into affect. Then he all of a sudden was missing in action. I have initiated a couple of emails to Mary Parman with very rude and intimidating responses from her. I am so glad to see this online forum, so that I know I am not crazy in thinking that they truly have taken advantage of me and my husband. We now have a lien against our property from the second Heloc from Bank of America because Parman Law Group said they were taking care of modifying it, but indeed did nothing and now I’m very upset about the whole thing!
Furthermore, Parman enrolled me into the PriVest Financial debt consolidation group, this is also a group they own, but deny owning, and I have learned I got ripped off there too. The money they were collecting from me was only going to them. Out of $897.00 per month, only $85.00 was going toward my debt account. I finally called and cancelled the service, due to their obsorbident fees and them getting nothing done for me. They then closed the account and kept over $5K worth of monies input into the account for 5 months, stating that the contract I signed with them should have indicated that and that I just didn’t read it right. I have been served a summons from one of the creditors now and am seeking legal recourse towards the Parman Law Group. And I also don’t understand how Mary Parman, owner, can sleep at night. Truly a horror story.

John Wright April 20, 2010 at 4:13 pm


If it walks like a piggy, talks like a piggy, by golly it’s a PIGGY!

BofA and it’s CEO Brian Moynihan reminds me of that song by John Lennon and George Harrison titled “Piggies” I invite you to listen to this song on youtube and see if it appropriately fits.

Have you seen the little piggies
Crawling in the dirt
And for all the little piggies
Life is getting worse
Always having dirt to play around in.

Have you seen the bigger piggies
In their starched white shirts
You will find the bigger piggies
Stirring up the dirt
Always have clean shirts to play around in.

In their ties with all their backing
They don’t care what goes on around
In their eyes there’s something lacking
What they need’s a damn good whacking.

Everywhere there’s lots of piggies
Living piggy lives
You can see them out for dinner
With their piggy wives
Clutching forks and knives to eat their bacon.

John Wright vs. Bank of America Lawsuit at:

When I filed my lawsuit against Bank of America, myself and United Law Group thought of the many others out there in the same situation. It was then that we decided to educate the public on what these piggy banks are doing, as well as unite us all together as one voice. Please help me turn this David vs. Goliath modification process, into a Goliath vs. Goliath.

Please stand with me and United Law Group and send an email to Bank of America that states that we will no longer tolerate their potentially illegal, fraudulent, irregular and abusive business methods.

Divided we might have fell America, but united we must stand!

Please send your email directly to Bank of America and include the following:

1. Your name
2. Your complaint concerning your experience with Bank of America.
3. Please end your email “I support John Wright vs. BofA Lawsuit!”
4. Please send a copy of your email to
5. Please send your email to both BofA link below and the CEO email

BofA Linked Email:

CEO Brian Moynihan:

Matthew Task, Executive Relations
Office of the CEO

Adriana Saldana April 21, 2010 at 12:29 pm

Parman Law Group did nothing for us!!!!!!!! tHEY PROMISED to lower our payment and it was all a lie!

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