Hero program is a scam and fraud

[David Tran]

We signed up with the HERO program through a contractor called Elite Home Energy. My wife and I wanted to them to install insulation in our home and believe it would add value to our house. We asked the sale agent that what happen when we want to sell our home in the future and he said you can transfer it to another person. We signed up.

Presently, we want to sell our home and find out a lot about this program. The company would put lien on your home and it's going to be difficult to sell your home at a later date, slow down the escrow. I have my title agent look into it and found out that they are charging us more than it is supposed to be. the amount increases from 9000 to 13000. I gave them a review on yelp and one of the agents responded to the post. She said she will have somebody to contact us. Nothing, so I called in instead. Also, I found out that the loan amount is more than it is supposed to be. One of your representative was trying to be a smart *** on the phone asked if it was 9000 and other fees were involve. I told him "even if it was really 9000 and the number still doesn't make sense". How can 9000 become 13000. So I sign up a loan with your company and it charges me 4000 in interest every year? Also, when we signed up, the sale agent didn't give us a hard copy of the contract and didn't disclose all the fees that involve with city.

In addition, I also found out from my research and from my brother in law, who recently purchase a home, that the hero program is not what it seems. Your company told us and everybody else that the loan is transferable. It's a lie. Some home owners, in my research, were unable to transfer the loan. It is between buyers and sellers. The sellers are responsible for the loan amount 100%.

To the other home owners contemplate about going with the hero program, Don't go for them because you will be in the mess we are in when you sell your home. Also, their percent is crazy high. their APR is 9.66 percent and they didn't even tell us that. The homeowner, whom my brother in law purchase the house from, was losing his house and he owed 30,000 on it in Riverside. You either lose your home or have to pay for in full when you sell your home. If you have the money for it, go for it. However, you should think twice before signing up. Once you sign, it doesn't matter what the other sale person said or how mess up it is, you are on contract. They will hold you to it. They will say you didn't read the fine print even you tell them that you have no loan contract in your possession. This is California for you, cut throat.

Lastly, we have no copy of the loan contract and all we have is the paperwork from the Elite Home Energy ( work order and notice of cancellation). I know either way we are screwed. I hope some body read this and do your own due diligence. New Home owners beware!

[James Swiderski]

I am a San Diego Attorney and am litigating cases involving these types of loans.  Even if you have an arbitration agreement there are avenues of attack.  One is Business & Professions Code section 7159.2's requirement that lenders pay only by joint check.  These loan programs, HERO (Renovate America) Renew Financial and Ygrene pay direct to contractors. Treble damages are available under the statute if its proven to be a pattern or practice.  Jim