This company is a complete scam. They will verbally tell you one thing and then refer back to their contract when you have a complaint. They told us that they were negotiating directly with our lender and then referred our case to a third party that wanted to charge us another fee to help.
We were contacted by New Life in April and told that we were pre-qualified for a loan modification and that they would work directly with our lender. We went out to their website to review their testimonials and all of them were for credit card settlements. When we ask about this we were told that they were new to the loan modification business, but had great success in the credit card settlement arena. We then did a quick web search on New Life and did not find any bad reports.
We were told that New Life would be taking a large group of mortgages to the lender for modification. Based on the volume of loans the lender would be compelled to negotiate modifications. We asked how New Life would be paid for their services and were told that what remained of our fees after our lender was paid would be New Life's compensation. This arrangement ensured that New Life would negotiate the "best possible" solution for us. Our fees for New Life's services would be almost $6000.
Based on this information we decided to work with New Life. We were sent an online contract and like many people, we did not read the entire contract in depth and assumed that we were being told the truth on what New Life would be doing for us. At this point, we were not behind on any of our mortgage payments and were told by New Life that the payments were we making to them would be kept in an account and used to settle with our lender.
During the first several weeks we were contacted on a regular basis by New Life and told that everything was proceeding according to plan. They were in contact with our lender and we were on track to settle by the end of August.By the beginning of July, I was making contact with them but calls were being returned right away. We were still being told that everything was proceeding according to plan.
On August 12 we were contacted by New Life and told that we were in underwriting and would be closing in a few days. On August 17 we called New Life to follow up on the closing. We were told by the person that we spoke to that they would send an e-mail to their manager to follow up. On August 22 we called to follow up again and were told that there might be a problem with New Life's e-mail and we could a call back soon. On August 23 we called again to follow up and were told that the manager was out of town and would be back on August 24. On August 24 we called again and were told that we would be called back with an update.
At this point, all contact with New Life was cut off. They would not call us nor would they return any of our calls. At the beginning of September we called New Life from a different phone number and they answered our call. We demanded to speak with a supervisor and were transferred right away. We told the supervisor that we were extremely dissatisfied with their service and wanted a refund. We were told that the contract stated that they did not give refunds but that he would see what he could do. The next contact that we received regarding the modification was from a lawyer in New Jersey. He said that our file was on his desk and that for $4000 he could help us with our modification. We asked him why we had to pay him for something that we had already paid New Life for. He told us that he was not really familiar with New Life or what kind of arrangement we had with them, but that they were not paying him.
We contacted New Life again, spoke with the same supervisor and again demanded a refund. We were again told that the contract did not allow for refunds and that what we had paid our fees for was to be put in contact with a third party to help us modify our mortgage. We told the supervisor that paying $6000 for an phone number was absolutely ridiculous and that we wanted a refund. We were again told that New Life did not give refunds but that he would see what he could do to find another third party for us.
We were contacted within 24 hours by another third party and told that he would be able to help us. The fee was much lower than the first person, but New Life did not pay him either. He said that he was in California but this was the first time that he had worked with New Life. We did not work with this person either. We contacted New Life again, but our call was never returned.
We began to pursue a loan modification on our own and eventually retained a lawyer to help us. We thoroughly researched our options, consulted the Better Business Bureau and the BAR Association. We just settled with our lender at the end of January and now have a modified loan.
I thought that everything was done, but we just received a call today, February 2 from New Life asking about our modification and that they could help us for an additional fee. I was speechless. The caller continued to talk about our mortgage and I was able to collect my thoughts. As I began to explain the situation and that we were done with our modification the caller interrupted me to explain that they could really help us. I told him that he needed to listen to me and that we were done with our modification. He began to get forceful and belligerent regarding how they could help us. I then became forceful myself and told him that I demanded a refund due to the lack of service. He told me that the contract did not allow for a refund, but he would check. I was on hold for less than 30 seconds and was told that a refund was not possible.
I cannot believe that we fell for this scam. Please do yourself a favor and do not get involved with this company in any way, shape or form. Do not believe a word that they tell you. They will verbally misrepresent what they will do for you and then refer back to the contract when what they told you does not happen.
As for the rebuttal from New Life that will undoubtably follow this complaint, we were a client of theirs. They will most likely claim that they did an "exhaustive search" of their files and cannot find any record of us. They will probably claim that this complaint was written by an individual or company that is trying to discredit them and the help they are trying give people. My response is that we were clients of theirs and I have the contract to prove it. I am simply stating the facts and hoping that I can save at least one person from falling victim to this scam.
In my opinion, it is a shame that a company would prey on people that are already dealing with a bad situation and making it worse.in my opinion, they should not be allowed to conduct business like this. As of this date I will be contacting the Arizona Attorney General and filing a complaint. If anyone else has been victimized by this company, please do not let it continue to happen. Contact the Attorney General in your state and file a complaint. Go to the Better Business Bureau and file a complaint. I am also looking into contacting the Federal Trade Commission and the Department of Commerce to see if there are any violations of federal laws.
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