Millions of homeowners across the nation are still struggling to save their homes. The government loan modification programs are confusing a lot of people who are seeking mortgage assistance and many are still making the grave mistake of paying a firm to help rescue them. Homeowners are desperate and when desperation sets in, mistakes in judgement are made.
Mistakes that may cost them their home.
A Bakersfield, California woman, Zuleyka Ruiz had to find this out the hard way. Not only did Ruiz end up $1,500 poorer, she also ended up losing her home to a man named Ricardo Melgoza. Melgoza had already been ordered to cease and desist all foreclosure rescue activities by the California Department of Real Estate (DRE) on November 2, 2009.
California Senate Bill 94, signed into law in October, prohibits any person, including licensed real estate salesperson, from collecting any type of upfront fees for performing or attempting to perform loan modification services. In this case, Melgazo was not even licensed by the DRE.
In November, Bakersfield.com reported on the story:
The two principals of the company “at no time” have been licensed by the state “in any capacity,” said Tom Pool, the department’s assistant commissioner.
Today Bakersfield Now reports:
One of those homeowners is Zuleyka Ruiz of Bakersfield. Her home was in foreclosure and had a sale date of December 12, 2009.
On December 6, Ruiz went to Mortgage Solutions which is located inside the law offices of Julio Jaramillo at 31 S. Real Road.
“They asked me for $1500 for paperwork to pay the people, to stop the sale date,” she said.
Ruiz paid the money, however, a law passed on October 11, 2009 makes it illegal for companies to charge for home loan modifications upfront.
We spoke with the owner of Mortgage Solutions, Ricardo Melgoza, about why he charged Ruiz even though it was illegal.
Melgoza said Ruiz wasn’t getting a home loan modification so he could charge her. But Ruiz’s paperwork says she was getting a modification.
K.N.C. Financiera is also listed on the Better Business Bureaus website with an F rating and many complaints.
In researching Mortgage Solutions and its owner, Ricardo Melgoza, I was quickly able to locate the cease and desist order issued by the DRE in November. The order states that Melgoza had operated his previous firm, K..N.C Financiera with a man named Jorge Zepeda. Both men were not licensed in any capacity by the Department of Real Estate. The DRE had found that they were operating illegally in the state of California and had ordered them to cease all business activity. Apparently the duo had taken thousands of dollars from several homeowners in the Bakersfield area and did nothing in return to help them.
Often, when these firms are served these orders by the DRE, they simply start up the next day under a new name and open new bank accounts. Apparently, this looks like it may be the case with Melgoza.
It is unknown at this time of Jorge Zepeda is in cahoots with Ricardo Melgoza in the ongoing loan modification scheme. However, it appears that Melgazo is still publicly conspiring to defraud homeowners in spite of the DRE’s order to cease and desist this business practice. He even admits to this practice in the Bakersfield Now interview above which may be all the damming evidence legal authorities need to prove probable cause in putting this rogue CEO out of business once and for all.
