YGRENE is the same PACE program for Northern California homes whereas the HERO home loan is for Southern California. Both are similar programs but it’s important to understand each and how to get out of it if you have gotten yourself into one thinking it will benefit you in the long run.
The HERO program is a local government approved program that offers up to 100% financing to homeowners looking for energy efficient home renovations. It sounds like a good idea on the outside, but there are drawbacks.
YGRENE also offers 100% financing with no money down and the balance gets tacked on to your property tax, making paying back the loan a little bit easier.
The PACE program, which stands for property assessed clean energy, enables low-cost, long-term financing for energy efficient, renewable energy, water conservation, storm protection, and seismic improvements to a home. This is for residential or commercial projects and financing is repaid over time with a special assessment tax on your property tax bill.
All three of these programs basically do the same thing, but there are drawbacks and while it might sound helpful, to many homeowners, this is actually done the opposite.
People think that upgrading their home even if you have low income or no credit checks sounds like a good idea until you realize how the payments work. If these payments are missed, the homeowner could lose their house. Many of these programs have actually preyed on people’s lack of knowledge about the program. Although these are authorized by governments, they are largely administered and funded by private lenders. Often times, contractors will pitch these loans and sign up consumers through online software with a focus on independent solar, plumbing, and roofing upgrades. The idea is to allow more homeowners to finance solar and other energy-efficient projects but they are secured by a property lien and if unpaid, a borrower can be foreclosed upon.
Most consumers start out by putting no money down and usually don’t pay for the first six months. Eligibility is based on your home equity, even though credit score and income are not a factor, which can get a lot of low-income homeowners in trouble. More and more homeowners are agreeing to these loans without understanding them or even needing them.
Sketchy contractors are getting these consumers approved on the spot and then inflating the cost of their service and misrepresenting how much the loan will cost or how they are paid back. However, is there really that much savings?
Currently, “YGRENE Energey Fund Inc. and YGRENE Energy Fund Florida LLC are facing a class action lawsuit alleging they engaged in deceptive sales practices to entice consumers into obtaining Property Assess Clean Energy loans. The plaintiffs claim that the YGRENE Energy defendants enlist ill-trained and self-interested home improvement contractors to sell these loans to homeowners.”[TopClassActions.com]
There are benefits to the PACE and HERO loans but they don’t work for everyone. They are easy to qualify for, offer 100% financing, can be transferred to the next owner, and offer potential tax credits, but, it’s important to understand the pitfalls and downsides to these loans as well.
Most homeowners get quite a payment shock, even if you repay over an extended period. Making additional payments can be burdensome and large, balloon payments might be simply undoable. Although they are relatively easy to qualify for, interest rates are sometimes higher than you’d pay if you simply took out a home equity loan or line of credit to make the improvements. Ease of application does not make the program a smart move.
Looks can be deceiving and even if it’s a government program, the contractors behind it may not be looking out for consumers. If you are looking to get out of a YGRENE, PACE, or HERO loan contact me immediately. I have ways that can help you get out of this loan quickly and efficiently.
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I know of a latino woman in preforeclosure with Mr Cooper because of HERO & PACE loans totaling. $45,000. Can these loans be canceled? I did submit her info to Gibbs Law Group & their class action suit.
HERO loan, I had to report the contractor, his licenses were revoked with the State Licensing Board. And an unregistered sales person sold me the contract
The contractor did get me approved quickly on the spot and then inflating the cost of my service and misrepresenting how much the loan will cost or how they are paid back. now after a year i am knowing i have $40k to pay more as interest . this is crazy. why would i sign a 40 thousand interest.
Hello I have also been a victim from a shady middle man who had convinced my wife and I to finance through a PACE loan. I now own an 8KW solar panel system that is worth 25K at most and paying off a PACE LOAN with Lien on my home with a buyoff amount of 42K+?? unbelievable. I should have just refinanced and taken out equity to pay it at 4% interest instead of the 8% this misrepresented loan offers. Not to mention the payoff fee is over 3K? my god, even my wife didn’t believe me on this because the middle man contractor who had signed us up on this happens to be the husband of her friend.
Thank you so much for you advice, you just saved me the hassle, it is good to do research before getting into all this problem
They came to my mud shack and installed windows, they inflated the cost totally! 1 window was 25k, I can’t believe it. They also played with my things in my kitchen and continuously played ymca music while they worked. I did not like them, so unprofessional too!
If you are in Los Angeles area, call the City Attorney’s office. Or go to their website. They are working on helping the homeowners.
Give me a call too. I can help
Would love more info about dealing with a PACE loan scam..
Hello, My husband and I have a Pace loan, my assessment was 17momths deferred unfortunately a few months after the work was completed we were assessed through our escrow, meaning our mortgage went up
Who are you?
Hello! I work with Jackie on her website. But she receives all communication.
I need help I got a pace loan my house payment went up 700.00
I need help ASAP getting out of me PACE loan. Can someone please call me back??
How can I repay my ygrene loan? Our mortgage payment is $300 higher because of the ygrene loan?
I’ve had these liens removed for a client. Jim Swiderski, Attorney
I have the same issues, my mortgage payments went very high because of the huge escrow shortage.
It is really hard to make the payments.
Can you help me, I am a single mother.
Please thank you
Talked to HERO today. These scammers quoted me at 5% simple intrest which would be tax deductible. We bought two American Standard air conditioners and Solar for 56,000. They hid the totals and hidden fees purposely when we Esigned. One year later our house payment doubled from 2500 5800. HERO turned 56,000 dollar loan to jus under 75,000. That was before the 6 3/4 finance cost. The payoff is about 95,000. My blood is BOILING
Wow I can relate ..sounds like the same scheming salesmen and contracting company I dealt with .. my wife and I are so stressed with more unpleasant surprises now that we are on our 3rd Ygrene payment loan was supposed to be 56000 but doing the math where going to pay almost double that amount !!?? It hasn’t sank in yet but sounds like a recipe for a stroke Not sure what to do here???
We also got a Pace loan last year. The salesman told us it was going to cost 15000, but it turned out to be 39000. He lied about things, the work was poorly done and the office workers were the worst to deal with. I now Cannot sell my home because of this loan. Bad deal.
can these loans be discharged in a bankruptcy chapter 7?
I have just signed the paperwork to have my roof replaced. I was quoted 24k for a flat roof on a 1400 square foot home. No work has begun and no permits have been completed. Am I able to get out of this? I now have people telling me how crazy expensive that is.
I need to get payoff for Ygrene, can you please send me the LINK
I need help with YGrene Loan – I feel trapped and my mortgage increased significantly. Is there still a lawsuit on this shady practice?
I also need to get the payoff balance for my Ygrene loan. I cannot get anybody to tell me anything. Not Ygrene. Not the tax assessor. Where do I go for this?
I tried to go on the quoted website WFSpayoffquotes.com and it sends me to some google email address set up. want to payoff my loans. Help!!!!
Hi – I am out in CA trying to sell my house. The Ygrene/Hero rep never told me it would be hard to sell my house without paying off the loans off first. I am within days of closing escrow and I am so mad at the moment. Does anyone have any knowledge of how to work around this issue? The buyer’s lender will not fund the loan until my $28K balance is paid and won’t allow it to come out of the sale. I don’t get it.
I need help! I am in Mo. this was presented to me and now I feel trapped and not sure what to do, I am scared and by myself and did not know that in the end was going to cost me $27000 for an air conditioner. Help!!
I would like more information. I used ygrene in 2016. Was told it was tax deductible and transferable to new owners if I ever sold my home. I have tried to get payoff info to no avail.
Would like information on attorney’s who are handling Ygreen Pace Loans Law Suits. I attempted to refi my mortgage and discovered a Lien from Ygreen has been put on my home preventing me to refinance. Please help! This was not what I had been explained. I live in Hillsborough County , Florida.
We also are dealing with this
I need help with a Ygrene unscrupulous contractor. They are asking us after the fact to sign change orders. This of course is extortion, I do not know whether to pay them cash for the change orders out of my pocket and what impact will the change order have with Ygrene payoff scheme.
Hello, I’m in San Bernardino CA and I’m also a victim of this PACE Loan and my home has a lien and been paying this high mortgage for the past 2 years. Early this year I was interviewed by San Bernardino County DA who is handling the case but no one gives me information on how to remove this off my mortgage loan? Please Help!
I would like to payoff my balance to Ygrene but have the same problem as the other folks in these comments. I have the cash to proceed but need an amount. Who can you go to to get the balance owed or have the lien removed?
Have you found a solution? I’m in the same predicament