California Real Estate Fraud Report

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07
Jun

Is Ally / GMAC Bait-and-Switching Consumers on HARP 2.0 Refis?

Is more misleading of consumers part of the 50 state Attorney General agreement?

GMAC, which is in the throes of bankruptcy, apparently thinks the ink is not yet dried on its settlement with California’s Attorney General as well as the AGs for the 49 other states. Borrowers who are trying to refinance their homes under the terms of the U.S. Treasury Department’s HARP 2.0 program, which is designed to help lower the interest on mortgages where the borrower is either underwater or living on reduced income, are complaining about high-pressure sales tactics.

GMAC loan processors are alleged to be sweet-talking and luring consumers who simply call to inquire about refinancing with tales of how easy it is to qualify for a refinance under HARP 2.0. After being promised that answering a mere 12 questions will enable the loan processor to email the consumer several loan options, e.g, 15 year, 20 year, 30 year, the loan processor launches into high gear in order to close the sale. Borrowers who want to refinance to 20 year loans are subjected to merciless lobbying to flip them into the 30 year products and even told that if they have a HELOC, that they will certainly default if they don’t pay it down with the savings from 30 years loans. The borrowers are also pressured to make an immediate decision and told they are not permitted to take a day or two (or more) to think about the refinance because “federal laws” require the loan applications to be processed.

Does anybody at Treasury or the California Office of the Attorney General know that these sales tactics are occurring at Ally / GMAC and that consumers are still being misled and lied to?

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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