OCEANSIDE — The nation’s economic woes and accompanying housing crisis may be showing signs of improvement, but homeowners are still urged to use caution, especially before paying upfront consultant fees in last-ditch efforts to avoid foreclosure. Unfortunately, the warnings are too little, too late for Ryan Walker and Kelly Hart.
When the couple bought their Oceanside home in September 2005, they could easily afford the monthly payments, even with 100 percent financing and two mortgages. Walker worked in construction, a strong market at the time, and Hart maintained her part-time job as a massage therapist while raising their two sons. They lived within their means and, unlike many Americans, said they weren’t mired in credit card debt.
Legal matters
Current law precludes brokers from collecting an upfront fee from homeowners who are in default with their mortgage lenders. Anyone not in default should first try to negotiate a loan modification directly with his or her lender. Homeowners who do seek help from a loan modification business are advised to not pay an upfront fee unless the company:
— Has a real estate broker to assist in the process.
— Has you sign an agreement stating when and what services will be performed and how much you must pay.
— Has submitted the agreement to the Department of Real Estate for review and the broker has received permission to use it and collect the advance fee. Visit www.dre.ca.gov/mlb_adv_fees.html for a list of approved businesses in California.
— Is working with a licensed attorney and the money is collected as a retainer fee.
Homeowners who tried to negotiate a loan modification prior to March 4 should contact their lenders again as new guidelines were put in place after President Barack Obama’s administration unveiled its home loan bailout plan.
Detailed information is available on the Department of Real Estate and Housing and Urban Development Web sites.
But two years later, when the housing market began to soften, Walker was forced to take a 25 percent cut in pay. The couple then started using credit cards for necessities such as groceries and soon began to struggle. Walker tapped into his pension to avoid falling behind in their bills.
“It started to snowball on us,” Walker said. Hoping to lower their monthly payments by adjusting the terms of their loans, they contacted their two lenders, EMC Mortgage and Countrywide Financial, but never got past the initial screening process. They said they were told there were no programs available to help them because they were not in default — something Walker and Hart were trying their best to avoid.
Their tax preparer suggested they call a woman he knew who at the time was helping homeowners obtain loan modifications at Better Life America in Oceanside.
“She told us we were perfect candidates,” Hart said. “We met all the qualifications for a modification. They said it would be 30 to 45 days.” That guarantee was never made in writing, however.
“Their attorney supposedly had a 99 percent success rate when working with candidates like us,” Walker said. “She sold us a good story.” In October 2008, they paid the $3,495 service fee with a cashier’s check hoping to have some financial relief by the end of the year.
In the nearly seven months since, Walker and Ryan have received about 30 e-mails from Mary Moi, the Better Life modification specialist assigned to their case after they paid the fee, but there has been no change in the status of either of their mortgages.
Most of Moi’s e-mails were updates stating she had made calls to the lenders and either hadn’t received a return call, or was told the documents were in line for or undergoing review.
Frustrated, Hart said she began calling EMC directly and had little trouble getting a response. “We knew what was happening before Better Life,” Walker said. “We were telling them what was happening and we paid them the money to do this for us.”
Hart also said some information she received from Moi contradicted what she was told by EMC. For example, in late January, Moi told the couple EMC denied their request for a loan modification and recommended a short sale. Hart said according to EMC records, no one at the company made such a denial or recommendation.
Hart said in late February, they were told first by EMC and then by Moi that their request for a loan modification had been approved and they should receive the final papers within days.
But on March 4, President Barack Obama’s administration unveiled its home loan bailout plan, and their approval was taken off the table, Walker said.
“That was a game-changer,” Debbie Krznarich, an EMC spokeswoman, said. “Everything is different. The Obama modification plan has created substantial alternatives for homeowners, but they will need to start over.” Krznarich said she couldn’t discuss specific transaction information, but records show Moi has contacted EMC on behalf of Walker and Hart.
The couple filled out the new federally required paperwork. They have also filed a complaint with the Better Business Bureau and are seeking a full refund from Better Life, partly because they said they got better results on their own, but also because they learned the company may not have been legally allowed to charge the upfront fee.
To do so, according to the state Department of Real Estate, or DRE, a real estate broker is required to have clients sign an agreement telling them when and what services will be performed. “The broker cannot have you sign an agreement until it has been submitted to the Department of Real Estate for review and the broker has received permission to use it and collect the advance fee,” the DRE Web site states.
Better Life is not among the more than 600 companies listed on the Web site that have received advance fee agreements. Tom Pool, a DRE spokesman, said one exception to the rule is for attorneys, who can collect an upfront fee if it is a retainer.
Paul Jacobson, an attorney at Better Life, said the $3,495 was not a retainer fee. But he said he doubted whether the company was precluded from collecting the fee and questioned why the DRE would have jurisdiction since it was not a real estate transaction.
Pool said according to the state business and professions code, anyone acting on someone else’s behalf, and doing so for compensation, is required to have a broker’s license.
“A plain reading of the law puts loan modification companies in a place where they will need a real estate broker’s license unless they qualify for an exemption,” Pool said.
State Sen. Ron Calderon has introduced legislation which, if approved in its current form, would preclude anyone from charging upfront fees for loan modifications. Meanwhile, Jacobson said according to the contract Walker and Hart signed, they could terminate the relationship with Better Life and receive $1,000 refund. But Jacobson, who said he would absolutely welcome legislation to regulate the loan modification process, added that the company is still committed to working with Walker and Hart.
42 comments
the reason this “attorney” and mrs moi are being blasted is due to the fact that this is an illegal operation. you CANNOT collect up front fees for foreclosure assistance in the state of california. this is NOT an LLP and this kid’s license will end up being on the line once the ca state bar takes their time to review this. as for ms. moi – just another loan processor that is losing homes for people one at a time while doing so illegally in the eyes of CA and the USA…
hopefully all the “friends” that are writing the positive postings will have an open home and checkbook to bails these criminals out…
It is estimated that Obama’s plan could benefit 8 to 9 million homeowners from the new modification procedures. So how do you know you qualify for the Mortgage Modification? Check the website http://obamamortgage2009.blogspot.com/
to see if you qualify. I was also in trouble and I am glad I did check it before I talk to my mortgage company and it helped – John Mayer, California
Some people handle stress in bad ways and it is obvious this couple has.
Mary you go girl don’t let this bad article change you.
I am still waiting for the Company you work for to post an article to counter act this negative one as it is within their best interest, but their silence is enough I guess.
You have nothing to worry about Mary this only opened new doors for you.
Mary Moi my thoughts and prayers are with you, remember all the good you have done and continue to do. God is obviously on your side and will always be.
God bless.
My brother lives in Carlsbad and noticed this article and all the comments. He called me to see if this was the same company that helped me get my modification, and it is. After reading this article 3 times, I still cannot believe it.
Ryan and Kelly, I faced the same issues with my lender giving me information that was different from the information the negotiator was giving Mary. We ended it by doing a conference call together which ended up being exactly what Ms. Moi advised me of. A lot of times there are customer service representatives that will say anything to get you off the phone and make you believe that you’re doing all the work. If it wasn’t for Ms. Moi’s efforts, I would’ve NEVER been able to save my home from foreclosure. She extended the sale date 4 times, and negotiated some pretty amazing terms for me. I was stressed and my relationship with my family was suffering. I explained my situation to her and she really stood by me. I had 20 months of delinquent payments waived, my mortgage payment is almost $1500.00 less and the lender agreed to all of this with a very small contribution amount. Its hard to read some of these negative comments, as it was just yesterday that she called me from an appointment to confirm that my lender received everything and my next payment will not be due until June 15th. I know the work that this marvelous young lady is capable of and am so grateful for her.
The fees were pretty high and I had a really hard time accepting the companies upfront fee policy. My file wasn’t assigned to a processor until after my sales representative accepted the payment from me. Not sure how this whole upfront fee thing is the processors fault since she doesn’t determine the companies fees? Boy, I sure am glad that I went through with it. If I didn’t, I don’t know if I could sit here and say that I’d still have a roof over my families heads. This modification process is pretty stressful but it always helps to have someone on your side when your lenders are difficult to work with.
Good luck to you both.
Mary, if you’re reading this, I will be calling you tomorrow! Keep your head up and continue to help those in need while staying close to God. As you told me many times during my trials “God is Good”.
I wouldnt want anything to do with Better Life America if I was the client and the employee it sounds like they are both getting screwed!!!
I wouldnt want anything to do with this Company Better Life if I was a client or an employee it sounds like they are all getting screwed!!!!
Its about as retarded as your multiple mini posts
what?? Do you not have a life? What are you getting a pay check to sit and post comments or are you the company in disguise just trying to get your little kicks in. Grow up and stop trying to start somthing that you are really not prepared to finish. And if you are then bring it other wise shut the hell up.
I have read all of the quotes on this page another thing that strikes me as odd is The supposed couple that had this article written hasnt had said much of anything……. Better Life America isnt your company backed by a Law Firm??? Whoa doesnt look like very good representation on the company or its employees.
craziness, that’s the most retarded shit ive ever read.
And another thing: why the hell would anybody need to apologize to Moi? I dont get it.
What I’m really trying to figure out is why? Since when does a news paper not get a comment from the company or individual? In this case since it’s really weird that Mrs. Moi’s name is blasted all over this article and not the company of Better Life America. But let’s go even deeper the news paper did get quotes from The Better Life Attorney Mr. Paul Jacobson.Why were the comments so weak? Isn’t he an attorney? I would expect a lot more from a good attorney that represents the company. Wouldn’t You? To me it looks like the company knew about the article and chose to minimize their presence and try and put all of the focus on Mrs. Moi but keep in mind when reading this article that Mrs.
Moi isn’t the person that sold the loan modification she is just an employee that takes direction from the company and its attorney. I have worked with Mrs. Moi and have witnessed her great follow up and customer service skills. I feel that she would be an asset to any company. I wish she worked for me. Matter of fact if you should read this Mrs. Moi I will be contacting you very soon with a business proposition. I hope your contact info is still the same.
Damn people! This story isn’t entirely about Moi!! Calm down and read the rest!
Better Life I have yet to see an article defending this poor employee from you.
Do the right thing and handle it.
Where is your so called legal department.
What a joke.
lenders lie all the time, they don’t have to do anything for you if they don’t want to and they can take as long as they want.
In most cases the lender is not the investor which means the entire process will take twice as long becasue they have to submit and follow the investor guidelines are all at their mercy only some of us are smarter than you.
WHAT DOES THIS SAY ABOUT THE COMPANY SHE WORKS FOR, IF THEY JUST STAND BY AND DO NOTHING ABOUT THIS.
YOU NEED TO SEND MARY MOI AN APOLOGY IN WRITTING NOW!!!!
DUMB ASSES.
Most people get themselves in a big mess and look for others to bail them out meanining us tax payers,then we have those that had a bad hand dealt to them either by the broker or just life itself.
The lenders are very hard to deal with specially when you have a full time job and family to take care of, since it is time consuming that is when people hire Companies like Better Life to do all the leg work..How dumb are you? to assume that this process would be short and smooth if this was the case everybody would be doing it themselves you are just fustrated of your own stupidity and are looking for someone to blame and that someone happend to be Mary Moi how can you live with yourself after providing such statement to the press. This should have been addressed with the Company and Mary’s name left out completely, personally this tells me how bright you both are to mention Mary as the person to blame as opposed to the Company…Anyone with half the brains would know who is to blame any person with any negative comments about Mary is pure jelousy they could only wish they had half her knowledge and gift for caring about people like she does.
Outrage, did you miss this part?
Most of Moi’s e-mails were updates stating she had made calls to the lenders and either hadn’t received a return call, or was told the documents were in line for or undergoing review.
Frustrated, Hart said she began calling EMC directly and had little trouble getting a response. “We knew what was happening before Better Life,” Walker said. “We were telling them what was happening and we paid them the money to do this for us.”
Looks like Hart called EMC himself and had better results. What are you missing here??
Ryan and Kelly you fools got yourselves in this MESS!!! As you stated, Mary kept you up to date in emails by letting you know the status of your claim. The worst your credits are the longer it will take!!! After all, Time is money. Stupidity cost alot too!!!
This “Moi Character” is amazing and has done good by me. This news article only speaks about her and not the actual company. Last time I checked, the processor is only an assistant to the attorney and what he decides to do. Since when does the processor set the fees for a company? How good of a job did the reporter do if she didn’t get a comment from Ms. Moi? I went to Mary for help after my divorce. She helped me and my ex-wife by bringing us together to get our home base settled for our kids. Without her and her prayers for our family, our kids would still be suffering. We are now trying to work things out and raise our family under God’s guidance and that’s with a lower mortgage payment.
anonymous 7:51 p.m.,
They did pay a fee. Nothing happened!!
You people need to brush up on your libel laws. The reporter did a fine job telling the story. Is it possible this Moi character isn’t all she’s cracked up to be? It sounds like she gave the couple in the story a hard time.
MARY! I’m with “confuse”, sue the paper, this crazy couple, your employer and the attorney who didn’t back you up in his comment. What type of employer does this to their employee? Judging from all the posted comments you are loved. Also if and when you decide to contact the paper with your part of the story, post your number. I’m on craigslist daily and there are a lot of employers looking for loan modification/short sale negotiators.
Mary I sure hope you sue the paper, that crazy couple and your employer for this crap! Your name should have never been mentioned in this article like this. Im a processor myslef for a CPA firm and fees are set by the employer not the employees. Furthermore Ryan and Kelly should be glad that Obama’s bailout plan came out while their modification loan was in processed. This would have given them back more than a $10000.00!!!
I hope she sues that couple AND the paper for libel. To name her specifically like that, I hope she sues them right out of their underwear.
Sure, people can work with their lenders themselves at no charge and fix their situation themselves (if possible). That means: hours and hours on the phone for weeks/months on end, being transferred all over, getting multiple answers to the same question repeatedly, and having it take months to get your loan modified. OR, you can pay a fee to a company to do all that work for you.
It’s the borrower’s choice NOT to do it themselves.
This is the most rediculous claim Ive ever read. Since when the processor set fees for copanies???
I am a co-worker and Mary Moi like myself believe in what we do and care about peoples lives and saving their home, how dare you mention her name linking her to the Company other than to praise her this lady has 2 infants and she comes in at 5am most times or works till 7pm or 8pm there no one here that works harder.
Let her do her job and take thjis slap in thwe face away now.
In these times of need Mary Moi did everything in her power to help me. I cannot say enough good things about the persistance and deligence of Ms. Moi’s work. My mortgage company was horrible to work with. I was referred to Ms. Moi and she assured me that she would do everything possible to assist. In her persistence, she was able to get a modification and my family continued to own and stay in our home. Ms. Moi kept the American dream alive of owning a home. Ms. Moi keep up the good work!
I used Better Life for my modification and my sales rep was michelle, her processor was mary moi and they did a great job. My lenders final decision was not to modify my loan because I made too much money. Michelle and mary placed a request to have my money refunded and I received it within a week.
I have several friends that used Better Life to help them save their homes. Mary is one of several great people that work there. They are a legitimate company and one of the few out there that truly care about their clients. I’ve checked them out on the better business bureau and the have an “A” rating. I have been thinking about using them to help me with my upside down mortgage and probably will be calling them this week. I am working with person named Mark in their attorney’s office.
I’m with May O. Bianca, you shiould write a rebuttal on this piece with the actual processor. This is very common and its on the news every night, but you never hear about these companies and the few that actually try and do good by their clients. I was told by a neighbor in the same business that they deal with some outrageous clients all day long. Ryan and Kelly, be glad that they’re still around and willing to give you a refund or continue working on your file. I dealt with a company in San Diego that did nothing for me and took off with my money.
Sorry Ryan and Kelly but it sounds like Better Life and their attorney Paul Jacobson are a bunch of weasels trying to hide behind their processor. Mary, post your name and number girl! We need some dedicated and hardworking individuals like you.
Thanks “Oceanside Resident”, I was the one who referred you and I couldn’t let this article go without posting a good comment. Mary, keep doing your thing and help as many people as you can. You have a huge group of supporters and we believe in you. If I haven’t said it enough times before, thank you for getting us a 0% rate for the life of our loan. I know you tried to push for more and requested a balance reduction from our bank, but this is more help than we could have wished for.
My brother was diagnosed with cancer and was given a life expectancy of 1 to 5yrs. Without a job and no way of keeping up with their mortgage payments they came to live with me and my family. With a larger family to support and my wife being layed off we were faced with one of the most difficult times of our lives. We went to a neighbor who had referred us to Better Life. After we agreed to their services, we received a voicemail message and an e-mail from Better Life. Our angel was mary and she has truly given us another chance by negotiating on our behalf. Our payment has been reduced by half for the life of the loan.
I’m an Indymac client and went to this company for help with my short sale. My account was assigned to Mrs. Moi for review and she truly has been a blessing. She was able to stop our sale date, have her agent list our property and get an offer all within a weeks time. We were able to get our short sale approved by Indymac becuase of her. I have referred 4 of my friends with Indymac to this company because of Mrs. Moi
WOW!!! Mary if you’re able to read this, I hope you plan on sending a rebuttal to this posting. I know how hard you work and how much you care about your clients and their well-being. We’ve worked together for years and I know what you’re capable of, people love to work with you because of the respect you show when working with us. I’m sure you’ll probably continue to help this couple and that’s the type of person you are. You’re in my prayers and I’m looking forward to hopefully reading your posting.
I think the one thing that everyone is forgetting to mention is that this individual did not sell the loan to this couple, she is merely a processor for the company by the name of Better Life America under Attorney Paul Jacobson. The reason I know is because I to am a current client. I spoke with the attorney several times in regards to my case and I know that Mrs. Moi is more sincere with helping me than anyone else I’ve talked to with regards to my case. I’m really sad that her name has been posted on this article and I pray that she doesn’t let this stop her from continuing to help those like me that are truly in need of help.
I heard about this article and I couldn’t believe that someone would write about a certain individual within a company and not the company itself. I was referred to mary moi by a friend at church and she has done amazing by me and my kids. During these hard times, my husband decided to leave me and our 2 children; I told her my story and she promised to do everything in her power to help me and my situation. She was able to save my home from forclosure. And now i’m comfortably able to provide food for my children and all because she was able to modify my loan to an affordable monthly payment.
At a time when Wachovia was unwilling to work with me on lowering my monthly mortgage payments to make ends meet, I went to mary moi for help. After being denied 3x’s she stayed by my side and continued to fight on behalf of me and my family. 3weeks later, my delinquent account was brought current and the past due amount was forgiven. To top things off, I was given a 5% rate reduction for the life of the loan. Maybe you two should stick it out and trust her and her ability to do whats best for you and your family.
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