Network News

X My Profile
View More Activity

Why Ask an Ex-Con for Mortgage Help?

Did you hear the one about the convicted felon who's now in the mortgage-modification business? Seriously. He's even hired a PR rep, which is how he came to my attention.

Michael Sichenzia was released from state prison in New York in 2005 after serving a four-year sentence for mortgage fraud. A previous felony conviction, in 1988, involved the sale of modular homes on Long Island. Since 2006 Sichenzia has run a Florida loan-modification company that offers to help homeowners who are in danger of foreclosure. In a phone interview yesterday, he called himself a "consumer advocate" who can help troubled borrowers ask lenders for a loan modification, short sale or other alternatives to foreclosure.

I told him I was skeptical and asked why anyone should trust a man with his background, especially in a field involving real estate and mortgages. "You don't have to trust me," he said, adding that consumers can do some research and find that people who have used his services are more likely to get a loan modification -- if they're eligible for one in the first place -- that doesn't lead to a re-default. He said he charges a flat $550 fee for help.

"Every client that hires me knows about my past, and they learn about it from the horse's mouth," he said.

You've gotta give the guy credit for chutzpah, but that doesn't mean you ought to give him your money and Social Security number. There's a bumper crop of people hawking foreclosure-avoidance help, often for fees of $1,000 or more. I have yet to see a shred of evidence that they can do anything for borrowers that cannot be accomplished by a nonprofit counselor approved by the Department of Housing and Urban Development. And struggling homeowners simply cannot take risks with their money.

High-quality, free help is available from nonprofit groups. In January I spent a day listening in on calls fielded by a counselor who works for the Homeowners Hope Hotline, 888-995-4673, and wrote about the experience for the Post's Magazine section. It can give you a glimpse of what happens after you place the call.

Let us know how your experiences have been trying to get a loan modification. Is anyone getting modifications big enough to make a difference?

By Elizabeth Razzi  |  April 1, 2009; 6:00 AM ET
Categories:  Foreclosure , Mortgages  | Tags: ex-con mortgages, foreclosure, loan modification, mortgage, mortgage modification  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Sales Calls and Refinancing
Next: Formerly Homeless Give Back in Woodbridge

Comments

Off topic, but...

Case Schiller numbers are in and Washington is down 2% from Dec and 19.3% YOY. Can you tell us what the % drop has been from peak until now?

Posted by: burkemic99 | April 1, 2009 1:17 PM | Report abuse

Obviously Mrs. Razzi didn't thoroughly do her research. I was a client of MR. Sichenzia's office. He saved my home. Him and his team worked with the bank and saved me from having no where to go. Just because somebody has been in prison doesn't mean they can't turn their life around. Mr. Sichenzia and his staff have helped so many people just like me. Thank you and God Bless.

I thought reporters weren't supposed to insert their opinions.

Posted by: jikohugy111 | April 1, 2009 9:13 PM | Report abuse

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company