In July I entered a contract with FSSS for a home loan modification for my residence. Paaren stated that she would be able to reduce my payments by $500 - $600 per month and would possibly be able to get a principal reduction as well. The cost for this service was $3000.00. The "Schedule of fees" per my contract was as follows:
Phase 1 (Client Enrollment/Document Collections)...$500.00
Phase 2 (Authorization Submission)...$500.00
Phase 3 (FSSS Negotiator Assignment)...$1000.00
Phase 4 (Pre Qualification With Lender)...$500.00
Phase 5 (Receipt Of Offer)...$500.00
TOTAL COST...$3000.00
Paaren assured me that due to new State regulations, my $3000.00 would be put into its own account and she could only withdraw out of that account as FSSS completed each phase of the contract. Paaren assured me that if ever I wanted to terminate my contact with FSSS, I would get the remaining balance left in the account for phases not completed.
In Oct I did not get the privilege as other FSSS customers in receiving a letter stating FSSS was closing but had to find out on my own. NOTHING was completed on my loan other than PHASE 1 (Client Enrollment/Document Collection) and PHASE 2 (Authorization Submission).
FSSS was one of the approved loan modification companies that the State of Nevada did recognize as a legitimate company. To be recognized by the State FSSS had to be bonded. I located the following bond company information.
J.R. Olsen Bonds & Insurance Brokers, Inc
7407 Topanga Canyon Blvd
Canoga Park, CA 91303
Phone: 800-452-7121 / 818-227-2620
Bond: Nevada Covered Service Provider, Foreclosure Consultant and Loan Modification
Bond Number: 41163795
Bond Amount: $75,000.00
Principal: Foreclosure Short Sale Specialists, LLC and all Associated Licensees
I discovered that in September Paaren and FSSS had stopped paying on the bond and the bond would be canceled late Oct. I contacted the bond company who forwarded me to their insurance company (Capitol Insurance Companies). Their information is as follows:
Capitol Insurance Companies
1600 Aspen Commons
Middleton, WI 53562-4719
Phone: 608-829-4200 / 800-475-4450
http://www.capitol.net/
Capitol Ins Co had me email my claim to [email protected] which put me in contact with Gary Horst (Claims Department / F&S Claims).included in the email claim I had to provided a brief statement of my situation. Capitol Ins Co then mailed me a letter stating my claim had been opened and I had to mail back all of my documents (Contract with FSSS) to help support my claim. Capitol Ins Co then forwarded my documents to FSSS and the bond company (J.R. Olsen Bonds) for them to review and respond to the claim. Surprise Surprise... FSSS never responded back to Capitol Ins Co request.
Capitol Ins Co concluded that FSSS had fulfilled (Services rendered) Phase 1 and Phase 2 of my contract (totaling $1000.00). Capitol Ins Co cut me a check for $2000.00 for services not rendered which I have already received and cashed! Due to me having a civil agreement (contract) with FSSS/Paaren, If I wanted to get the other $1000.00 back for Phase 1 and 2 of my contract, I would have to file a small claims lawsuit against Paaren.
Additionally, I filed a complaint through the State of Nevada Division of Mortgage and Lending http://www.mld. Nv. Gov / / http://www.mld. Nv. Gov/new_forms/complaintform_mld. Pdf to notify the State of what FSSS and Paaren did to me. The form was easy to fill out and could either be handed in or faxed to the office. I have since received a letter back from the Division of Mortgage and Lending:
"The Division is in receipt of your complaint against FSSS. The closure of FSSS by its Ms. Paaren and Ms. Mikulic without returning clients' files or unearned fees to each client appears to be a violation of Nevada Revised Statute/Nevada Administrative Code 645F. We have forwarded your complaint to the Division's Deputy Attorney General for further review."
One month later I received a letter from State of Nevada Office of the Attorney General Bureau of Consumer Protection which stated the following:
"This office is in receipt of your correspondence regarding the above-referenced matter. This information has been reviewed and will be kept in our files to help monitor trends in business practices and determine priorities in our enforcement efforts and legislative recommendation. Additionally, we have forwarded the information you provided to an investigator for review. If further action is warranted, you may be contacted by a member of our staff. Thank you for bringing this matter to the attention of the Sate of Nevada."
I know this was long but I wanted to give as much information as possible so other people can attempt to recover some money. Please file a claim with both Capitol Ins Co and the Divistion of Mortgage and Lending so we can prevent these people from RIPPING OFF others!!!
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