A reader sent me the following information on a company called National Forensic Group and wanted to know what I thought.
The company is:
National Forensic Group
208 Glen Cove Road
Old Westbury, NY 11568
Tel: 516 248-4949
State of New York records say the company was incorporated on May 18, 2011, so it appears to be a relatively new company. That’s a concern for me.
State records say the company says it is located at:
NATIONAL FORENSIC GROUP LLC
2550 HEMPSTEAD TURNPIKE
EAST MEADOW, NEW YORK, 11554
The National Forensic Group does not appear to have a public website and from the emails you shared with me is using a gmail account.
I’m concerned how “established” this company really is.
Your contact was by Dimitri Georges who said to you:
“Upon a quick review it seems like there are numerous “violations” on your HUD-1 Settlement Statement which should force the bank to reduce your debt obligations. Apex is only the mortgage co and more than likely they sold the loan. I’ll update you once we review more docs. Thank you-Dimitri”
National Forensic Group is selling you a service to get your mortgage eliminated or reduced. They also claim to be able to get foreclosure cases dismissed. For this alleged service they are charging $2,500 which they claim is fully refundable “if we cannot help you.” But they don’t explain what the definition of help actually is.
What is defined is found in the service agreement you sent. In the short contract they say:
National Forensic Group, LLC (NFG) agrees to utilize its best efforts to settle all associated debt in the attached Debt Relief Application(s) for client and obtain either a Zero “0” balance or reduce the debt/payment by at least twenty (20%) percent. We are not a loan modification company and are not modifying the loan. The process is based upon an audit of the loan and irregularities or illegal acts or violations that may have been made by the lender.
NFG will begin work upon receipt of all documents, signed paperwork and deposit and clearing of the full amount of the application fee. A response will be forwarded no later than 45 days once the above terms are met or your money will be returned if no action has been taken by NFG or if NFG cannot reduce your debt/payment. Payment shall be made as follows:
The sum of Twenty Five Hundred ($2,500.00) Dollars to National Forensic Group, LLC. If there is more than one loan for client, then an additional One Thousand ($1,000.00) Dollars shall apply for each additional loan client offers to NFG. This Contract is for mortgage/debt eradication based upon an audit of the loan documents and possible irregularities and/or violations by the lender. We are NOT a loan modification company. New York law shall apply.
In the event the mortgage eradication is successful and there is a “zero balance” statement from the lender, then WITHIN SIXTY (60) DAYS thereafter, a First (1st) Mortgage will be held by NFG or its assignees of TWENTY (20%) PERCENT OF THE ERADICATED MORTGAGE amount and shall be made and funded at closing. Interest shall be at Six percent (6%) per annum or at clients then prevailing rate, whichever is lower. Client also may choose to obtain conventional financing for the said 20% or utilize other funds to pay the 20% fee.
In the event the existing Mortgage is reduced by at least Fifteen (15%) Percent or more, (but less than a full eradication) then WITHIN SIXTY (60) DAYS thereafter, a Second Mortgage will be held by NFG or its assignees of FIFTEEN (15%) PERCENT OF THE ERADICATED MORTGAGE AMOUNT and shall be made and funded at closing. Interest shall be at Six percent (6%) per annum or at clients then prevailing rate, whichever is lower. Client also may choose to obtain conventional financing for the said 15% or utilize other funds to pay the 15% fee.
National Forensic Group
I’m not commenting as a lawyer, since I am not one. I’m just making observations as someone reading the document you provided.
This contract raises some big concerns for me. First off, it’s deficient and lacks even the basic items to form a valid contact.
Next, there is this clause that you will place a lien on your house if they actually get the results they claim. But there is no statement within what time period they must be obtained. So if your mortgage gets eliminated for some reason five years from now, will they come back and place a lien against your property?
If this company feels confident they can give you the results they claim and if not the fee is fully refundable, then I would suggest you use a third-party escrow service like Escrow.com to place your funds with a third party to be released when they perform the services promised.
Finally, before you do anything, find a local real estate attorney this agreement and get their take on it as well.
If the company feels confident they can perform the services they state they should have no issue with you both placing the funds in escrow and defining a date by which services should be delivered by. If they won’t or can’t that should be a red flag.