Profile picture for neuhouse

What Do You Know About Federal Trustee Services?

My friends lost their home because this company never started their service even though they had been paid several thousands of dollars.
  • February 06 2011 - US
  • 2
    2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (16)

Profile picture for hisnameisnoah
Hi neuhouse,

The same thing happened to me. I'll follow up with a full account of what happened so others can be warned.  I'm also filing a complaint with the Washington State Attorney General.  I recommend your friends do the same:

http://www.atg.wa.gov/fileacomplaint.aspx 
  • February 07 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for hisnameisnoah
neuhouse,

So this looks grim.  I discovered that the founder of Federal Trustees Services is currently in jail:

http://www.co.pierce.wa.us/cfapps/linx/calendar/GetBooking.cfm?booking_id=2010347025 

He was my original point of contact at the company and when I demanded to talk to him I was told he was on "Sabbatical." Interesting place to spend your sabbatical.
  • February 07 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for hisnameisnoah
Hi Neuhouse. I've posted my story of how I feel I was ripped off by Federal Trustee Services.  May this be a warning to others considering engaging with this company. Please have your friends file with the AG as well.

You can view and read the full timeline of events here:

http://www.scribd.com/doc/48387189/Federal-Trustee-Services-Review-of-Alleged-Foreclosure-Rip-Off-Company
  • February 07 2011
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for hisnameisnoah
neuhouse,

I added a video to youtube with the warning, hopefully others find it:

http://www.youtube.com/watch?v=l4KKwLk22I4
  • February 08 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for hisnameisnoah
So I have an unexpected update from my end.

Today I received a voicemail and email from Allan (the founder) where he indicated:
"It is our intention to provide you with an immediate full refund that after careful examination of your file, you certainly deserve. Please contact me as soon as you can to help us in knowing how you would like to receive it."

Honestly I didn't believe it, but I responded to send me a refund via paypal and indeed I received a full refund of $3,500 via paypal with the message: 

"Noah, Please accept our most sincere apology for failing to deliver on the services weagreed to originally. Attached please find a refund in full, including our coverage of the fee of 101.80 for Paypal. Please feel free to contact us with any questions you may have." 

It's unfortunate this has been such an ordeal, but for me personally this resolves the matter


  • March 02 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Sapphragette
How much time do you have?!

1) This company has been cited and fined by the Washington State Department of Labor and Industries for refusing to pay workers, violating workers rights and failing to pay minimum wage. At least six other cases are pending at this time. 

2) They are being investigated for consumer fraud by the WA state Office of the Attorney General.

3) They are also being investigated by the Federal Department of Labor for attempted whistle-blower intimidation as well as violating federal workers rights laws. 

3) The CEO Allen Hennessey (AKA Gerald Hennessey and Gerald-Allen Hennessey)  went to jail in the late 1990's for Bank Robbery after a hold-up in California and again in 2010 in Washington State for fraud.

4) One of the current officers of the company was found guilty of practicing law without a license and practicing law while not actually being an attorney in 2008 by the Bar Association of Washington State and their current attorney is under investigation for ethical violations. 

5) They have not "saved" one single home from foreclosure.

          
  • May 04 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
It looks this Federal Trustee Services may have recently filed for bankruptcy here in April 2011, but I do not know if they are the same company or not.

There is some information on the company here as well as information on how to file a complaint with the WA state Attorney General.
  • May 04 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Sapphragette
Federal Trustees is still functional - the Chapter 13 bankruptcy filing they tried to begin purely to avoid paying wages they owed to unpaid and underpaid staff  was thrown out of court for failure to meet minimum filing requirements (they did not file a list of assets, failed to identify any creditors and failed to pay the $1000 filing fee.).

The FTC, WA State Attorney General  and Bankruptcy courts have been notified that this was purely an attempt to avoid being fined and cited by WA State Labor and Industries. 

In addition - as of December 2010 it is illegal for a company offering "mortgage relief" to take an upfront fee for "Mortgage relief work". They may only charge you AFTER you have written notice from your bank notifying you that your payment has been re-negotiated. 

An attorney can charge an "upfront fee" - but that money MUST be kept in a trust account until the written offer from your bank arrives - and you are able to withdraw it at any time. 


Please know that According to the FTC and its law enforcement partners there is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they're conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer.    

Federal Trustees is anything BUT a legitimate business (FYI they are now calling themselves "Mortgage Claim Center Outreach" and "Mortgage Claim Center.com LLC").

  

     
  • May 28 2011
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Carole Tyne
There are so many people out there that are scamming.   Especially, difficult to see people on hard times being take advantage of. 
When facing foreclosure best to try contact your bank for options, contact a local agent for referrals to lawyers to further explore your options.
  • June 01 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
Good information Sapphragette. Thanks for the follow up.
  • June 01 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

From what I have read, the company is having issues.
  • June 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

There is one exception to the FTC new rules and that is if your are a private organization.  FTS reorganized under a non-profit trust in order to circumvent that particular rule.  In there case, however, it is a scam as even under their new name the same old practices, and failure to do the work, failure to pay their agents and employees still exist.  It is true that a forensic audit and securitization audit do not in and of themselves avoid foreclosure for you.  What they do do is prove who is doing the fraud, who does nor does not own the note.  From that information you contact a real estate or loan experienced attorney and go for a quiet title action via the judicial process.  While there have been minimal success outside the courts, the only sure way is through the courts.  I also point that the judicial process is two steps.  You have to go through the federal courts to get a favorable decision that the lender, servicer, etc., has not legal right to your property.  You then have to go through the local circuit courts to obtain the quiet title relief.  It is all time consuming and very expensive.  It still does not relieve that fact that if you are a seller and considering a short sale, deed in lieu or a foreclosure sale, if you do not know who actually owns the note then you are passing a clouded title to the new owner.  It also leaves you on the lamb for potential legal civil action.
  • June 05 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Sapphragette
You're right Steve -  thanks for reminding me of the non-profit exemption (I  forgot FTS reorganized a few months ago) but given the direction of  some current cases now on appeal, most non-profits wholegitimately work with housing foreclosure (that would be those associated and endorsed by HUD) abide by the FTC rules anyway.  

And while the FTC rules may or may not apply (in my opinion its a matter of time given the current court winds before the FTC rules will apply) - the States Attorneys General are still charging CEO's and staff at companies like Federal Trustees with criminal charges for fraud.

I am still going to disagree with you about the usefulness of a Forensic loan audit, for the following reasons:

1) Even if fraud were proven by a forensic audit (and this is highly unlikely based solely on a single document) that is not going to establish grounds for a lender to essentially re-negotiate the contract to make a mortgagee's payments more affordable.

If fraud were proven the contract would then be voided - but that doesn't mean the mortgagee would get to keep the property.

It would a mortgagee would have to give back all the purchase money they paid in a lump sum (and then presumably sue the bank for damages).

2) The problem with companies like Federal Trustee Services (now calling themselves Mortgage Claim Center Outreach) is that they are mostly based on the very flawed "theories" of a literally insane felon with links to the white supremacist movement named Roger Elvick -  a man convicted of federal fraud - and his nutty "Patriots for Profit" group. None of their ideas are based on any legal principles derived from centuries of contract law.

(Anyone who deals with companies like this should read about Elvick here: http://www.splcenter.org/get-informed/intelligence-report/browse-all-issues/2005/summer/patriots-for-profit

Contract Law states that a contract can be voidable for fraud if the "thing" you agree on is  so substantially different than what you ended up with as to make the contract worthless (i.e. you paid for a dog and they delivered you a giraffe instead. You don't have to take the giraffe because it's not what you contracted for).

But contract law also says that whatever is promised, a person has a right to be paid back if the thing he contracted for is not given. BUT (and this is a big one) it doesn't  follow that the absence of some insignificant detail will authorize someone to void the contract. (It's called the rule of  "repugnancy" - and it's in case law which most of these nitwits never bother to read)

So...to go back to our giraffe analogy.

Yes- the contract in this example is probably voidable. They lied to you and told you were buying a dog. 

Clearly, you wouldn't be obligated to keep the giraffe (its not what you paid for). Logic would say you could send  the giraffe back and get your money back.

Or you could, of course, keep the giraffe (maybe you like giraffes) - and you already paid for it. You'd still have to pay for the giraffe , though.      

What you would most certainly NOT be able to do would be to keep the giraffe anyway AND get your money back. It just doesn't work that way.    
But this is essentially what companies like Federal Trustees promise -  argue fraud, void the contract and keep everything.  

The so-called 'repugnant' terms must be very important,--so important that the court thinks that if these things were or were not there it would so fundamentally change things the whole nature of the contract would be changed. (i.e. it's hard to argue that a giraffe is just a really tall dog and you bought a tall dog).

In the case of a mortgage unless you could prove something so fundamentally wrong with the mortgage contract (Completely wrong property comes to mind or totally wrong plat description maybe - that's been the case in the very few cases that have been successful).

Nit- picking details simply aren't going to be something that any court is  going to find sufficient to void an entire mortgage.

Forensic audits pick up tiny details - but I never saw one that uncovered anything drastic or major. (So to use an example - you could argue that a dog isn't a giraffe and void the contract - but you probably aren't going to void a contract for fraud because you paid for a giraffe, they delivered a giraffe - but now you think after owning it for ten years that  it's spots aren't big enough. )  

And again  - more practically - even if you managed to prove something so flawed it met the repugnancy rule - it won't in the end mean you get to "keep your property free and clear without fear of foreclosure" as Federal Trustee Services claims.

You'll still have to pay for for your home -  and now you'll have to give back the principal the bank paid for  the property in the first place   
              
3) From a  purely practical standpoint- a client who is facing foreclosure because they can't make their mortgage payments is hardly going to have  the resources available to refund the purchase price of their home, nor the resources to spend years in state and federal court hoping to void their mortgage.
  • June 05 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for HILLBILLY 4141

I FOUND HIM IN HUNNIGTON BEACH CA I WILL POST HIS ADRESSE AND HIS FAMILYS AS SOON AS IM DONE WITH HIM

  • February 02 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
Congratulations and keep the thread posted if you make any headway in getting your complaint addressed!
  • February 02 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user9891784
We are renting from them!! 

My boyfriend & I found the most awesome post for a huge room for rent right the beach in a beautiful house in Huntington Beach. 

They lied to us about everything... EVERYTHING! Allan and his "wife" (girlfriend) Chelsea are the lowest of the low! 

My friend just so happens to be in real estate and looked up the house I'm living in. Allan put it in a "tust" so it's not under his name and he hasn't paid the mortgage for a year. I'm guessing this house belonged to someone who was struggling and paid Allan to help and now he is renting out the rooms and spending the money. 

Allan and Chelsea bought an RV and are on the move now... currently in Washington. They said that they are going to travel the west coast doing business.  I'm guessing they are on some kind of wanted list. 


How do we stop them?! 
  • October 29 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.