Principal Reduction Group / Forensic Loan Audit Scam
The Principal Reduction Group offered an "appealing" solution for distressed homeowners who owed more than their homes were worth and were in danger of losing their homes either to foreclosure or the short sale process. Through conducting a Forensic Loan Audit, the Principal Reuction Group provides homeowners specific details on one or more RESPA violations which occured rampantly with lending institutions specifically at closings occurring between 2001 and 2007. Once homeowners purchase the service of the Principal Reduction Group at a cost of $2000.00, the homeowners would recieve 1) a copy of the forensic audit performed on the closing documents issued at closing 2) a consultation with their in-house attorney (Atlanta Attorney, Michael Harper) and 3) an estimated 3 months of consultation based on the prescribed amount of time necessary to negotiate the principal reduction of the mortgage for the homeowner based on violations discovered, giving relieved families a reduced monthly housing expense. At first glance, this appears to be a solution which could actually work. Apparently, once a homeowner forks over $2000.00 each in upfront fees the president of the company, Jim Burnett and his partner, Christopher Jones do everything to avoid communicating with their new clients. Burnett boasts about the number of satisfied clients who have been assisted by this costly program, but has yet to provide documentation of the actual outcomes of any homeowners who have successfully benefitted from the services promoted by this company. Furthermore, this company lists itself as an LLC, but the website claims a non-profit status which should call for additional oversight due to the tax-exemption status which correlates with a 501C-3 entity. These characters continue to exploit the underinformed homeowners seeking help to save their homes by conducting shill transactions. If there are any other horror stories, please post your complaints so that the appropriate authorities can look into advocate for the consumer benefit.