Legal Question in Real Estate Law in California
Wilshire Holding Group
My wife and I were transferred out the state and attempted to sell our house for almost two years prior to moving. We owe more than our house is worth by $250,000 assuming we could even find a buyer! We can--name removed--afford our rent in our new location and this loan and can--name removed--refinance. We tried everything from working with our lender to short sales. Our only option at this point seems foreclosure. I found a company called Wilshire-Holding-Group that takes over your property prior to foreclosure. Their deal is to deed my property to them for a 1% loan-fee, and when the property goes into foreclosure they help �dispute� the record on my credit.
I can--name removed--say I am interested and would just like to get on with my life, but I am very curious. Is this a scam? What are the repercussions in doing this in a non-recourse state?
3 Answers from Attorneys
Re: Wilshire Holding Group
I don't know the company, bit I'd be very leery of that kind of offer.
Re: Wilshire Holding Group
I agree with Attorney Cohen. First, their website has an extremely misleading statement on its front page. The discussion of "Debt Relief" is misleading because both at a Federal level, and now in the State of California, any debt relief received as the result of a foreclosure of your primary residence is exempt from imputed income, and is not taxable. Second, you are still liable for the loan after you "sell" to Wilshire who does not formally assume the loan with your lender, and as such, you are the one who will be "dinged" by the lender on your credit report for late payments and eventually a foreclosure. Finally, it doesn't appear that they have complied with the laws in California which protect consumers who are in foreclosure - they require very specific disclosures in all advertising - including their website. I'd say it is likely not to be legitimate, and I would check with the Federal Trade Commission, HUD and the State Attorney General before doing anything.
*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.
Re: Wilshire Holding Group
Of course it is a scam. How could this outfit lodge a non-fraudulent "dispute?" You would be paying someone else to tell lies for you. If there is a legitimate dispute, which sounds unlikely, handle it yourself with the credit agencies - they make it easy. If there are no grounds for dispute, don't pay someone to invent them - this could backfire.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
