A reader reached out to me and wanted to know more about a mailer they received that claimed to offer a mortgage modification. Additional details were even more surprising.
The mailer is below.
As you can see the outside of the mailer looks official and claims to be Package D-42. The sender of the mailer is not identified on the outside of the mailer.
As you will notice the inside of the mailer does no identify the sender either. It makes claims that a new fixed interest rate is available and a reduction in the loan balance.
The consumer who received this mailer called the telephone number in the mailer and was connected with a group called Legal Solutions Debt. What is ironic is the header on the email they sent looks surprisingly like the header used by World Law.
The company also provided additional material that said they were an IRS approved non-profit organization.
A search of the IRS website could not locate any recognized charity under the name Legal Solutions Debt. Source
Here is what the consumer received from Legal Debt Solutions.
It was a pleasure speaking with you. As stated in our phone conversation, you are entitled to a restructuring of your home loan based on the National Mortgage Settlement below which will bring your interest rate to 2-3% fixed for the life of the loan, as well as a possible principle balance reduction. I have attached the link below to our firm website so you may do your due diligence.
ABOUT THE SETTLEMENT
In February 2012, 49 state attorneys general and the federal government announced a historic joint state-federal settlement with the country’s five largest mortgage servicers:
- Bank of America
- JPMorgan Chase
- Wells Fargo
The settlement provides as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government. It’s the largest multistate settlement since the Tobacco Settlement in 1998.
- Relief to distressed borrowers in the states who signed on to the settlement; and
- Direct payments to signing states and the federal government.
It’s the largest consumer financial protection settlement in US history.
The agreement settles state and federal investigations finding that the country’s five largest mortgage servicers routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct. Both of these practices violate the law.
The settlement provides benefits to borrowers in the signing states whose loans are owned by the settling banks as well as to many of the borrowers whose loans they service. Borrowers from Oklahoma will not be eligible for any of the relief directly to homeowners because Oklahoma elected not to join the settlement.
KEY PROVISIONS OF THE SETTLEMENT
Immediate aid to homeowners needing loan modifications. Which is including interest rate reductions as low as 2%, as well as first and second lien principal reduction. The servicers are required to work off up to $17 billion in principal reduction and other forms of loan modification relief nationwide. State attorneys general anticipate the settlement’s requirement for principal reduction will show lenders that principal reduction is one effective tool in combating foreclosure and that it will not lead to widespread defaults by borrowers who really can afford to pay.
Immediate aid to borrowers who are current, but whose mortgages currently exceed their home’s value. Borrowers will be able to refinance at today’s historically low interest rates. Servicers will have to provide up to $3 billion in refinancing relief nationwide.
Payments to borrowers who lost their homes to foreclosure with no requirement to prove financial harm and without having to release private claims against the servicers or the right to participate in the OCC review process. $1.5 billion will be distributed nationwide to eligible borrowers. The National Mortgage Settlement Administrator will mail Notice Letters and Claim Forms in late September through early October 2012 to approximately 2 million borrowers who lost their home due to foreclosure between January 1, 2008 and December 31 2011 and whose loans were serviced by one of the five mortgage servicers that are parties to the settlement.
I will follow up with you when I receive the results. Please call me direct if you have any questions. I look forward to assisting you in putting you in a much better financial position.
Cassandra Harris | Senior Debt Counselor
“Your Financial Freedom Starts Here”
Toll Free: (877)-755-0075 ext. 123
Fax: (855) 715-2436
The consumer later received the following email.
I have the results of your eligibility from the underwriting team. Congratulations! You are indeed entitled to a restructuring of your home loan based on the your investor mandated guidelines. Please call me at your earliest convenience so we can go over the results together. I will let you know what you are entitled to, your options, and how to proceed forward.
The fee to be charged the consumer was stated as $3,500 and would be split into payments.
The company is not transparent about where they are actually located. – Source
If anyone receives such a mailer and wishes to checkout the company that sent it to them further, see:
I would recommend that anyone considering using such a company should read the following free guides.
- The Ultimate Consumer Guide to Checking Out a Debt Relief Company Before You Sign On the Line
- How to Check Out a Business or Company to Avoid Getting Scammed or Ripped Off
Just as an aside, the domain name legalsolutionsdebt.com was registered on April 27, 2012 and the ownership for the domain name is hidden. Again, a lack of transparency.
According to public records, the websites hosted on this server include:
Interestingly LegalSolutionsDebt.com, BestFreedomFinancial.com, LegalSolutionsLawGroup.com all use similar site designs. – Source
Legal Solutions Law Group
Best Freedom Financial
Legal Solutions Debt
Both Legal Solutions Law Group and Legal Debt Solutions use the same testimonials and site design.
According to the BBB Legal Solutions Law Group, P.C. is really
The Flaig Law Firm
5707 Corsa Avenue, Ste.104
Westlake Village, CA 91362 – Source
And according to the California Secretary of State a company named Legal Solutions Debt is located at:
2182 DUPONT #207
IRVINE CA 92612
The BBB has no listing for a company named Legal Solutions Debt.
The address provided on the Best Freedom Financial website appears to the a UPS Store mailbox center. – Source
If you receive a credit or debt relief offer in the mail, do some good and let me pay you for it. Click here.
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