Bogus foreclosure rescue relief offers false HOPE

What happens when you pay someone who says they’re going to help you, and they don’t? Well, in the case of HOPE Services, the FTC came calling.

Here’s the story: According to the FTC, a group of companies and individuals doing business as HOPE Services told consumers facing foreclosure they could get help from legitimate, government-backed programs, like Making Home Affordable —  but only after they made three monthly trial payments into a so-called mortgage lender’s trust account. Then, says the FTC, HOPE Services pocketed that money, while strongly discouraging homeowners from talking to a lawyer or to their mortgage lender. All this, even as homeowners faced foreclosure notices and hearings.

In the end, HOPE Services provided no help for these homeowners. Financially-strapped people lost almost $2 million. That forced some into bankruptcy. Some people, ultimately, lost their homes.

Look for these signs of this kind of scam:

  • “Guaranteed” fixes. No one can guarantee they can stop a foreclosure.
  • Fees up-front. Don’t pay in advance anyone who promises to stop a foreclosure or guarantees you a new mortgage.
  • Stop paying, stop talking. Avoid anyone who tells you not to pay your lender, or not to talk with an attorney or your lender.
  • Pressure to sign. Is someone rushing you, or asking you to sign over the title or deed of your house to someone other than your lender? Those are red flags.

Read more, if you’re worried about paying your mortgage. And if you think you’ve been the victim of a mortgage or foreclosure rescue scam, file a complaint with the FTC.

 

Tagged with: foreclosure, mortgage, scam
Blog Topics: 
Homes & Mortgages

Comments

These foreclosure rescue scams are so sad. We have to continue to educate the public--people listen to the crooks that tell them what they want to hear.

Back in 2012, I had to Retain a Pompano Beach, Florida Attorney, Stuart Starr of Starr Law Group upfront fees to do a modification with J.P. Morgan Chase for me. At the time I paid the Retainer, the Attorney told me to stop making payments to Chase and when the Modification was completed, all missed payments would be added to the end of the mortgage. Little did I know that this Crooked Attorney--Stuart Starr Of Starr Law Group, was not going to help me, causing Chase to foreclose. I tried myself to get the modification completed and Chase refused 8 times to help me. I retained 2 other Law Firms to help me, paid up front retainers and they also did not help me. That Attorney was Debra Quinn of Quinn Law Group. Attorneys and the Florida Bar are all crooks and can't be trusted. I had one former employee with Starr Law Group to tell me Starr had about 20 clients he collected money from and never helped any of them. I paid Starr Law group $3500.00 upfront for nothing.

If you think you've been the victim of foreclosure fraud, contact the Federal Trade Commission, or your state Attorney General's office and file a complaint. You can call 1-888-995-HOPE for free personalized advice from housing counseling agencies certified by the U.S. Department of Housing and Urban Development (HUD).

Thank you for this information

I Foreclosing was a disciplinary initiative: The owner must be in debt. Why would it say the foreclosing was bogus?

The people who said they'd help homeowners were bogus.  They did not help them.

Victoria Falls board bid my condo and paid $15.000. and reject me out so I moved in with my son and family out of states. My mortgage had been me to make payments and except me to get another loan so they would sell my condo and I am still owner but the board hold title and I has deed. I told the mortgage that I am not owner of the condo. what do you advice me what to do. My fiancial counslor told me to forget this situiation.

New Hope Modification, LLC out of New Jersey ripped off 1000 of people in 2008/2009 all over the US with the same promises. We lost our home after making payments for 15 years.

I was a victim of a loan modification fraud. Helen Silwany of H&J Consulting, Inc. in Brentwood, New York told my husband and I that she would get us a principle reduction and therefore, lowering our monthly payments. We ended us giving her $2,870 which she in turn ended up with two mods which were higher than the one we had aquiered on our own. She mostly only deals with minorities which don't fight or complain or for that matter don't even speak the language. Please beware of this company and don't be fooled by these people. Keep your money and try to work things out with your bank directly.

Hello, I was a victim as well. I paid that woman 4000. for no help no mortgage reduction nothing. I think we should report her to the BBB. I saw innocent families losing homes and being played as idiots. She Is a heartless monster with no way of rational thinking, she and the way she treated her staff was disgusting. I have never been so disgusted in my life. She has a sweet young man in the front and cursed at him one day in front of everyone. very unprofessional and the mortgage our court system our federal loans system should be on top of the fraud she changed my paystub amounts with out my knowing. she made up fake names. she is a monster. 631-617-6331 664 Suffolk ave brentwood ny is her location and the cops should know.

These are useful details for a complaint.  Please go to ftc.gov/complaint to report this. We can't address complaints you write about in blog comments.

You can also contact the state Attorney General in your home state and the state where the business is located.

Victim 2 - have you taken her to small claims court? I am in the process of gathering all my evidence. She had the ordacity to threaten me over the phone. She said small claims court is expensive and you better be prepared because George Gavalas, Esq. will fight you. She wanted to intimidate me and frighten me to back off. Sorry but I'm not going down without a fight!

This women has been scamming people for Years! About 9 yrs ago my family lost it all because of this women and I'm still waiting for the day justice catches up to her. Complaints were filed but she still manages to avoid getting caught. Her day in court will come. Please file formal complaints and help catch this piece of garbage.

If you haven't already, please go to ftc.gov/complaint to report this. We can't address complaints you write about in blog comments. You can also contact the state Attorney General in your home state and the state where the person is located.

Hii .. i read your post it is so sad , bad information and every peoples faced same problems

Do foreclosure scam companies pressure you into signing a contract? i signed a contract with them couple months back because i was desperate for help. We lost 6,300$ and now they are threatening to sue because our bank took the money back? Anyone ever expierence this?

If you signed a contract and now you have a disagreement with the company, you may want to talk to a lawyer or to your state Attorney General’s office. Your attorney general might know if there are problems with the company. A lawyer might be able to look at the contract you signed and tell you about your options.

If you want to find a lawyer, you could look on this state-by-state list from the American Bar Association, or visit this site from the State Bar Associations.

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