Consumer protection week scam of the day alert: foreclosure rescue

March 8, 2010

by Missouri RealEstateRama

–Attorney General Koster cautions homeowners to beware of foreclosure scams–

Jefferson City, MO – March 8, 2010 – (RealEstateRama) — Attorney General Chris Koster said today the nation’s financial crisis has led to rampant growth of foreclosure-rescue scams. Since he took office in January 2009, the Attorney General’s Office has had 321 complaints of foreclosure fraud, compared with just 25 complaints in 2007 and 2008 combined, a more than one-thousand percent increase.

“There is no doubt that our nation’s tough economic times have given rise to scammers preying on those at risk of losing their homes,” Koster said. “In Missouri we will continue to have a zero tolerance stance against these scammers who try to take advantage of people who are in dire financial straits.”

Since he declared a “zero tolerance” campaign against these types of mortgage fraud in April 2009, Koster’s office has taken legal action against eight businesses involved in foreclosure rescue or mortgage modification scams, and is continuing to investigate others.

Today, Koster joined with Kansas Attorney General Steve Six, the Federal Trade Commission and local organizations to highlight a major campaign against foreclosure-rescue scams. Kansas City is one of a number of cities participating in the NeighborWorks America Campaign to help at-risk homeowners avoid and report loan-modification scams.

Koster alerts consumers that businesses marketing foreclosure relief often demand up-front fees from consumers. Koster said it is illegal in Missouri for these types of businesses to charge up-front fees before providing services, and consumers should never pay such a fee. He also said that these businesses also often tell consumers to stop making their mortgage payments to their lender, a practice which leads to long-term damage to the consumer’s credit rating and hundreds or thousands of dollars in additional fees and debt for the consumer.

Koster said foreclosure rescue firms use a variety of methods to find distressed homeowners, such as going through public foreclosure notices or public files at government offices. He urged consumers to be cautious of an individual or company representing itself as a “foreclosure rescuer,” “foreclosure service,” or “mortgage consultant.” He said consumers always should be wary of anyone guaranteeing to stop their foreclosure and should never sign any document they haven’t had time to read or do not fully understand.

“The old adage ‘if it sounds too good to be true, it probably is’ is an apt statement where foreclosure rescue scams are concerned,” Koster said. “If you are facing foreclosure or are having other difficulties with your mortgage payments, work through a non-profit, HUD-certified counselor or an experienced attorney. And if you are the victim of a foreclosure rescue scam, call our consumer protection hotline at 800-392-8222 or to go online at www.ago.mo.gov to file a complaint.”

Koster is issuing a “scam of the day alert” each day this week as part of National Consumer Protection Week.

Comments

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Comment by Collene Collins on March 10, 2010 @ 6:17 pm

I am so tired of the unethical actions of people unfortunately we are in a situation that is past foreclosure and no one seems to care. We had to vacate our home in Jan 2007 because of Toxic Mold. We continued to make payments to our lender and they refused them and would charge us unnecessary legal and late fees. Then they refused and decided to file a foreclosure. Yes this is a predatory lender and we had lots of questions because we had a 10 minute closing in a food court and were not giving our closing papers to have proof of what we had questioned. It took 4 1/2 years until we finally got them coincidently 4 days after the bank foreclosed after fefusing a payment when we were 18 days late for 1 payment. Long story short we now had proof of forjury on our right to cancel forms, purjury on amounts they claimed to pay and the checks proved otherwise, no money had been applied to our principal after over 100,000 in payments and we had a principal and interest loan and then we got a HUD approved credit counselor and the bank stopped the impropeer forclosure but would not allow us to make payments until they looked over all of our documents and verified the debt as well as all the other violations that we requested. They never complied for 4 months and then sent another foreclosure. long story short our house was sold on 10/20/08 or 10/22/08 we have 2 different days on documents. We obviously had no idea of the sale cause we sent our October payment and it was returned without an explanation. Its too involved but the main thing was the bank ignored chapter 244: section 14 and sold the house. They even signed under oath an affidavit stating they complied with chapter 244: section 14. We paid a lawyer $45,000 and we produced proof at trial with just a judge and the bank could not produce the proof they complied with the law. We just got the judgment after 4 months and we lost. The house is still vacant cause we had filed the superior court case and now we filed a Motion t Stay Execution and for A New Trial. The only problem is we do not have anymore $ for a lawyer. The court date is next week and I need help. It seems like everyone is corrupt and what do you do when you are telling the truth and you have the proof to back it up? Who is there to go to to uphold the law? I need an ethical person with a voice that will be heard. I am nervous about writing motions because I am not schooled in the law. I have however learned alot and realize that we not only have proof of an illegal foreclosure but also the right to rescind and the refusal of payments to create a fraudulent default and proof of forgery, perjury. The bank witnesses and their attorney were aware that under oathe they knowingly and willfully made statement they knew not to be true. HELP PLEASE!

Comment by Paul Anthony Kelly on March 12, 2010 @ 6:22 pm

I know you said you left your home due to toxic mold. Did you go back to live in it? Are you still living in it? I don’t know where you live, but I imagine if it’s like california you can file an unlawful detainer action. IF YOU STILL ARE in your home, in calif it could give you up to 14 months more to stay in there. I simply suggest that so that if you are in there, it would buy you more time.

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Comment by custom machining on July 5, 2010 @ 5:36 am

Just stumbled upon this article and i must say i never heard or knew such things exists. Interesting yet annoying.