Is Cronauer Law Center a Scam? – Nancy

“Dear Steve,

I am looking for a good place to get my loan modification done

Is Cronauer Law Center a scam? They are asking me for $5000 up front to pay for loan modification services. I can’t find much information except their website.

Nancy”

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The Answer

Dear Nancy,

All I can tell you about them is what I have found through some research.

Washington, DC — The National Community Reinvestment Coalition (NCRC) has filed complaints with the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) against Adrian Cronauer and the Cronauer Law Center. Mr. Cronauer, who is best known as the radio disc jockey who inspired Robin Williams’ character in the film Good Morning Vietnam, now runs Cronauer Law Center, a Washington, D.C. based law firm. NCRC’s complaints allege that Mr. Cronauer and Cronauer Law Center have intentionally misled consumers through misrepresentations and deceptive and fraudulent loan modification and foreclosure prevention practices.

NCRC President and CEO John Taylor made the following statement:

“Scammers who cause injury to homeowners under the guise of offering assistance must not be tolerated. The rules apply to celebrities as well. We believe Mr. Cronauer and the Cronauer Law Center to be in violation of the Federal Trade Commission Act, the Mortgage Assistance Relief Act rules, and other state and federal laws. We look forward to regulators reviewing our complaints and investigating this important matter further.”

“The unfortunate reality is that law firms are culprits in a growing number of mortgage scams. In addition to legal action, we’re calling on the American Bar Association to police its members,” said Taylor. – Source

Here is a copy of the complaint filed against Cronauer by the NCRC with the CFPB.

You might want to start by contacting a free HUD Housing Counselor and discussing your options.

Please post your responses and follow-up messages to me on this in the comments section below.

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Yvonne

I received the letter from them in the mail. Everythings they promissed was not true. They promissed that they would reduced the principle interest to current market. They charged me $2800. You can’t do it on your own. Call your lengder and they will help you.
D Anthony

Need help contacting someone to file a complaint. I paid excess of 3000.00 to have my loan modified, which now has ruined my credit score and shows my mortgage behind by 3400.00 which is totally opposite of what I was told would occur.
Tammi Gange

This company was actually helpful in getting me a modification. I was 6 months behind, with a sceduled sale date, and I went from an 8 percent interest rate down to a 3.4%. It took about 3 months but it it still gone done. It sounds like some people have had some bad experiences…but that happens with everything. I bought some chips from the grocery store last week and they seemed stale. That doesn’t mean chips from that store no good! I just got a bad bag. Big deal. It’s not fair to trash a company’s name for ISOLATED incidents. People die in planes all the time yet we still fly in them. People die in car accidents EVERY SINGLE DAY yet we still drive them. You’re focusing one a bad incident that happened instead of focusing on all the good they are doing for struggling homeowners. Typical media! That’s why I don’t watch the news. It’s mostly all crap. 90% of it exaggerated. So why not do a story about the successful modifications this company has done? Probably cuz your stories would get less ratings and hits, huh? It’s all about ratings. Just like the news on TV.
- clutchplayer
  
  I just received a call from the Cronauer Law Center today and spoke for over 30 minutes to a senior loan officer who told me I qualify for the government loan modification and asked for 3 payment of $875 to get started. I only had one objection to get started, which was for him to give me only one reference of someone in my area the company provided a good service for, who was very satisfied with their modification reduction, and then I would proceed. He refused.
  - http://GetOutOfDebt.org Steve Rhode
    
    Certainly your request seems reasonable. Odd response on their part.
  - Noa
    
    Steve, so if you help people get out of debt by free advice. How do you make your money?
  - http://GetOutOfDebt.org Steve Rhode
    
    Everything laid out here http://getoutofdebt.org/terms/
Rose22668

I recently received a phone call from cronauer law center and was talking to two foreigners that told me that they wanted 3 installments of 750.00 to lower my mortgage rate . I explained to them i was on unemployment and they said thats better the less you make the better your chances are of lowering your mortgage rate. well right there was my red flag. They said that they would be negotiating with my current mortgage company. So I thought if they are going to do that then why do i need a middle man. so i called my mortgage co. myself and they said that i was at the best offer they had and weren’t able to do anything for me. so I to believe this is a scam.
Aaatreeservice01

Cronauer Law firm said that my Loan Modification was approved, they want $2850.00 I don’t trust them, they said that I would get the loan, just pay them.
MJ23

pretty sad when a law firm is slandered and labeled a “scam” before any real research is done…..they have a ton of satisfied clients and only bring on people they can modify….I hope you would defend and praise the firm about the good work they have done and continue to do— as passionately as you label it a “scam”….good day to you….
- http://GetOutOfDebt.org Steve Rhode
  
  Please feel free to post your positive experience with the firm.
Rstrupp

Greetings,
I am Systemic Investigations Manager at the National Community Reinvestment Coalition and I am woring on the Cronauer matter. Would it be possible for you to connect me with “Nancy”, and others who inquire about the Cronauer Law Center? We want to identify as many people as possible who have had contact with this firm. I can be reached at [email protected] or 202-383-7710. Thank You-Robert Strupp
- http://GetOutOfDebt.org Steve Rhode
  
  You just have. Nancy is subscribed to the comments. If you have an update on this matter, please feel free to post it here.
  - Noah
    
    I have a question, what if their was no law firms available to help homeowners to save their homes? What will would happen then? Have any of you every assited a home owner to save their home? What would you do if someone called you 3 days away from a foreclosure sale date with tears in their eyes telling you they that the Bank if selling their home and they do not know what else to do? What would you do?
  - http://GetOutOfDebt.org Steve Rhode
    
    What about talking to a local bankruptcy attorney about filing a chapter 13 bankruptcy to instantly stop the sale and regroup.
  - Noah
    
    well that would great in a perfect world, yet my wife lost her job and we had a 5 yr arm. Threrefore my loan adjusted and the payment shot up 800 more than before. from 2300 to 3100. With all of this happening I was not able to pay the chapeter 13 payment to the court and the regular payment of 3100. i was going to be paying 4200 including the 1100 payment to the bk trustee. my income now is only 7500 a month since my work decreased as well. In addtion, when i tried getting help from Bank of America and hud cancelors they did nothing for me but tell me in the beggining that i needed to be 2 months behind. which cause the whole fiascal in the first place back in 2009. Basically Long story short if it was not for Cronauer Law Center I will not be having the 2300 payment today through a Hamp program at 2% for 5 years then at 4.25 for the remaing years. They restuctured my expenses and got the Modification completed which non of the other places could do. I am a contractor and not the brigtest at finances, yet i trusted them and they got the job done. They gave me peace of mine always giving me updated on my file which….Bank of America never did. all they said was which they lost all my documents or never recieved them. and I know you steve know this. You like giving advice yet i doubt you do anything for anyone. you look like a blubble ball and need to pick up a hammer and do some real work. REAL MAN WORK. You probably work for the banks for all i know.
  - Noah
    
    and if i would of listen to people like you i would of lost my home. Stop praying on Law Firms that are respectable.
  - http://GetOutOfDebt.org Steve Rhode
    
    And what did I say that would have caused you to lose your home?
    
    How have I prayed on a respectable law firm? If you assertion is that I have somehow attacked Cronauer Law Center you will see I did no such thing. I answered the reader question with what I found from NCRC and their release.
    
    I also advised the reader to talk to a HUD Housing Counselor but I never said they should not use any law firm.
    
    In fact if I was to add anything I usually tell people that if they are unsure what to do they should consult with a licensed real estate attorney in their state.
  - http://GetOutOfDebt.org Steve Rhode
    
    Speaking of respectable, I see there have been a number of comments posted from your IP address under the names of others, praising or defending Cronauer Law Center. Please feel free to pick one real identity and stick to it instead of posting comments using different names.
  - http://GetOutOfDebt.org Steve Rhode
    
    You asked how someone could stop a foreclosure three days before an auction and I gave you an answer.
    
    If your real agenda is either to praise a specific law firm or attack me you don’t need to hide behind a question.
    
    I’m sorry it did not workout for you in your situation.
  - Noah
    
    I am not hiddin behind anything Mr, Rhode, just stating the truth. BK 13 does help some people save their home but for my situation i needed someone who was going to help me save my home and lower my payment since everywhere I turned i felt like nothing was being resolved for 2 yrs. The stress of not know whether or not i will keep my home and move my family out. Well I dont wish that on anyone. Have a good day Mr. Rhode and I hope and pray you are never in the position of losing your home.
  - http://GetOutOfDebt.org Steve Rhode
    
    The reader who asked the question would have more respect for Cronauer Law Center if you just shared your experience. That could leave them with a potentially positive opinion. Instead what you’ve done is create posts praising them under different identities and attacking me.
    
    It seems that your statement that you were three days away from foreclosure and your comment about a two year process leads me to believe this was not a sudden surprise situation.
    
    Along the way had you spoken with a licensed real estate attorney in your state or with a HUD Housing Counselor to discuss options?
    
    Do you now have a permanent modification of your home? Has your situation been resolved?
    
    Cronauer Law Center is obviously available as a provider of mortgage assistance relief services in accordance with the new FTC guidelines. Under those guidelines no advance fees can be charged for mortgage relief services.
    
    The attorney exemption says:
    
    “Attorneys are generally exempt from the rule if they provide mortgage assistance relief services as part of the practice of law, are licensed in the state where the consumer or dwelling is located, and comply with state laws and regulations governing attorney conduct related to the rule. To be exempt from the advance fee ban, attorneys must also place any advance fees they collect in a client trust account and abide by state laws and regulations covering such accounts.”
    
    What state do you live in?

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Is Cronauer Law Center a Scam? – Nancy

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