Those Who Created the Foreclosure Crisis by Peddling Toxic Loans

In the latter part of 2007 competing mortgage brokers, the banks and their collaborators collapsed under the debris of the crumbling real estate market. Curtis Melone of PacWest Funding had been watching this drama unfold fearful that his business would be next to fall. He reshuffled his business and gave it a new name – Green Credit Solutions. He planned to offer to people what they needed most – help from their staggering debts. His firm now began to deal with loan modifications committed to help those facing foreclosure.
Thus a lender during the sub-prime era selling toxic loans, soon changed colours and became a helper of troubled borrowers. This was the common path followed especially in Cluster Homes For Sale Southern California, after the melt down by the very firms that traded ruthlessly in sub-prime mortgages. They created the problem and now they are the solvers of it.
The brokers who found themselves without work following the collapse of the property market went hunting for the next opportunity Making An Offer On New Construction Home – the loan modification business. It opened up an opportunity to cash in on the very problems they had assisted to create.
A good number of firms, including Green Credit Solutions have downed shutters and are now being investigated by the state and federal government. Attempts are being made to prove that they cheated their clients. Attorney Benjamin B. Wagner based in Fresno said, “Some of the same people who were involved in luring people into loan origination schemes years ago are now back”.
The instance of Bernadette Perry can be cited. The judge banned her for operating in the modification industry. She had played a big role in transforming Synergy Financial Management Corporation based in Fountain Valley to become a firm peddling foreclosure relief after changing its name to Loss Mitigation Services. The regulators allege that it did not help its 1,400 clients after taking from each of them $5,500.
Another story is that of Green Credit that had 6,400 files kept apart for loan modification in its offices at Foothill Ranch. The officials of the state raided it in 2009. The company was fed by a national group of brokers with clients and perhaps is the biggest loan modification firm that has come under legal scrutiny. John Noonen, investigating on behalf of California Bar said, “The volume and the way they branched out… they were kind of at the centre of it”.

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