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ALG Capital Mortgage / Scam and rip off!

1 15455 San Fernando Mission Blvd Suite 307Mission Hills, CA, United States Review updated:
Contact information:
Phone: 818-792-4010

Sometime during the middle of January, I received a call from Matt Bourgo with ALG Capital Mortage who got my attention telling me that he could get us a 15 yr term mortgage for 4.75% with no points and minimal closing costs ($1215). My husband and I discussed it and decided this would be a great opportunity for us to get ourselves in a better financial position through consolidation as well as have our home paid off even sooner.

Matt was very personable and friendly, always assuring me that his goal was to educate his clients and help them get themselves into better financial situations. He faxed my husband a good faith estimate which contained a higher interest rate than what he had told us he locked in on Jan 28. The following day we received documents from a bank showing a loan amount $8000 higher than what we had agreed upon at that time, with an origination fee of over $7000. When we tried to reach Matt he did not return our calls.

I contacted the receptionist and was referred to Mike-Matt's supposed supervisor. He promised to give us the agreed upon interest rate, even if they had to eat some fees to get it. He also apologized to me about the bank documents and told me that Matt should have warned me about them. They were retail figures, and as brokers, they purchased loans at a wholesale rate due to the number of loans they did. He told me to throw them out, which unfortunately, I did.

After another month and a half we finally signed, what we considered to be great terms that we had gone over with Mike on the phone the day before.

Once the loan finally funded, however, the amount which was supposed to have been wired into our account was short by $3500. When I contacted Mike about this he told me there was a hold put on the funds to ensure the 2nd mortgage was paid off and that he would take care of it and we would get the money in a couple of days.

The money never came and a few days later we received a statement from the escrow company showing a loan amount equal to the amount on the documents we had received from the bank, which included an origination fee of over $7000 that went to ALG. Upon reaching Mike, he assured me that he would take care of it and told me that he did not know why they had put in the wrong loan amount. Well, of course, now we know it was all a scam.

I have since discovered that the interest rate is 5.125 instead of the 4.75 we signed for, and that the six months worth of property taxes are nowhere to be found since the loan I now have holds no impound account.

If you are a victim of these people as well, don't just take it and think there's nothing to be done. That's why people like this keep getting away with it! Holler and yell and make it known!

Va
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Comments

  • Ri
      20th of Mar, 2008
    0 Votes

    Don't just holler and yell, do what the many other victims of this company are doing: contact the authorities and get a lawyer:

    If you search google for this phrase:

    "alg capital" fraud

    you will find mayn posts on /link removed/ and a few on Yahoo Answers, all with the same story as this person's.

    If you are a victim, use these resources to put an end to this:

    FBI:
    4500 Orange Grove Sacramento, CA 95841
    (916) 481-9110

    Dept. Of Corporations: http://www.corp.ca.gov/about/complaint.asp

    Dept. Real Estate: http://www.dre.cahwnet.gov/gen_contact.html

    Ed Stark of Cron, Israels & Stark: (310) 393-7300 (representing one of the other victims)
    Jack Gordon of Driskell and Gordon (626) 914-7809 (representing another victim)

  • Ja
      23rd of Mar, 2008
    0 Votes

    We were scammed also. Thanks for all the info above.
    I will be contacting the District attorney in my hometown tomorrow.

    Check the notary public seal on your grant deed recorded copy. We've never seen that person who got paid and supposed to had notarized our documents. Report to Sacramento Notary Public office if this happened to you.

    Guess I found someone that is heartless for small bucks.

  • Do
      22nd of Sep, 2008
    0 Votes

    I am the Owner of Affiliated Lending Group Inc. aka ALG Capital Corp. based in Denver Colorado. ALG Capital Mortgage out of California who is noted in these complaints has no affiliation with our company. We are honest, hardworking, experienced commercial loan brokers and these post are being misconstrued with our company. Though I realize this service is well intentioned, please note that the website address provided by the Complaints Board is ours and not that of ALG Capital Mortage. Please correct immediately as it is damaging to our good name. I think their web address was www.algcapital.com.

  • Ah
      9th of Jun, 2009
    0 Votes

    I am one of the victims of ALG capital. One of their con artist "Nyung" trapped me for the mortgage loan with ficticious truth of lending document. He lied, cheated, forged my signature with escrow company (Virtual escrow. LA area). He promised us the cash back of 100k, no prepayment to the previous bank, no prepayment for the new loan, no points, no origination fee, no appraisal cost, 2% interest rate for a fixed mortgage for 15 years. All the above promises broken. I did not know when the loan was closed and how. i received a letter from the escrow company informing me that the loan is closed (without my signature, no details of new loan).Now I am stuck with the new bank with 7.5% interest rate, prepayment penallty, and the loan amount was ancreased to 120k (to cover the ALG expenses with a mortgage payment $2000.00 more than I used to have).
    I have written letters to:
    1 Sherrif department
    2 FBI department
    3 Department of corporation
    4 Department real estate
    5 Escrow company management and controls
    6 Paid Attorney to collect money from ALG, he could not find them
    and collecting money from me for services.
    7 Senior citizens help group in county of Alameda
    I did not even receive any answer from any one the departments, as listed above. I strongly feel that none of them are sincere to help the victims. Now I am learning to stop crying and not to ask for any help from the agencies which have big names without action.

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