Alleged Forensic Loan Audit Racket, Sister Outfit Seek Bankruptcy Court Protection

In Rancho Cordova, California, KXTV-TV Channel 10 reports:

• A foreclosure rescue company described as a "scam" in a lawsuit filed by the state attorney general has filed for bankruptcy protection. US Loan Auditors filed for Chapter 7 liquidation and its sister company, My US Legal Services, filed for Chapter 11 reorganization in US Bankruptcy Court in Sacramento last Thursday.

• Both companies and their principals have been named in a $60 million lawsuit filed by the attorney general's office Oct. 6. The lawsuit claims US Loan Auditors was a foreclosure rescue scam that snared hundreds of California homeowners.

• US Loan Auditors allegedly promised troubled homeowners it could save them from foreclosure by conducting a "forensic audit" to challenge the loan documents. According to the lawsuit, the sister company, My US Legal Services, would then file "cookie cutter" lawsuits against lenders that were generally dismissed by the courts. [...] One of the principals, attorney James Sandison, has also filed for personal bankruptcy protection.

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• [Company attorney Austin] Cooper suggested homeowners who believe they are entitled to a refund file a claim with the US Bankruptcy Court for the Eastern District of California.

For the story, see Rancho Cordova firm accused as 'scam' in lawsuit files bankruptcy.

See Media Pounding Continues For California-Based Forensic Loan Audit Peddler; Federal Judge Calls Outfit's Practices "The Blue Ribbon Of Shams!" for an earlier post on this group.