They're preying on Toledoans who face foreclosure. One woman shared her story on how one company tried to swindle her mother out of a thousand dollars!
The woman did not want to be on TV but she says her eldely mother is in foreclosure and she almost got scammed by a foreclosure rescue company.
They promise to get you out of foreclosure, but in order to do it, you have to pay a large fee. One company is called Global Home Associates and according to the Better Business Bureau, it's one of several foreclosure rescue scams.
The Toledo Fair Housing Center offers the same services free of charge. Keith Foster is the TFHC director of enforcement and compliance. He told us, "What happens when the foreclosure process starts, it's a public document so everyone in the world knows this foreclosure complaint was filed, including people who are trying to take advantage of persons. So they get that information and send out cards saying 'This is what we can do and give us some money we can help you out'."
Foster says these foreclosure rescue companies ask for outrageous fees and in the end, they don't help you get out of foreclosure. Foster says if you need help, call 1888-995-HOPE.
In August, the Ohio attorney general filed six lawsuits against companies for foreclosure rescue scams. Attorney general Marc Dann says the businesses would promise homeowners they'd stop the foreclosure process for a fee. Instead, they'd only pocket the money and the homes were still foreclosed upon.
The companies are in Lucas, Cuyahoga, Delaware, Franklin, Hamilton, and Mahoning counties The attorney general now wants the courts to order the companies to pay restitution to the consumers, pay civil penalties of $25,000 per violation and be barred from business until they've paid up.
Meanwhile, if you face foreclosure, here are tips to avoid similar scams:
* If you're getting letters threatening foreclosure but aren't yet in a lawsuit, contact a certified HUD counselor for assistance.
* If you have a pending lawsuit against you for your home, get an attorney.
* Never sign a contract under pressure.
* Never make mortgage payments to anyone other than your lender.
* If you can't pay, contact your lender immediately to work out payment arrangements.
* Don't sign anything with blank lines or spaces.
* Call the Better Business Bureau and the attorney general's office to see if there are any complaints against a company before you use them.
1 comment:
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