Foreclosure Defense Scams – A Big Problem!

It’s 11am on June 4, 2014, and I just got off the phone with a representative in the Consumer Protection division of the N.C. Attorney General’s office.  I was inquiring about foreclosure defense scams and if they had heard of the company that I am currently suing on behalf of my clients, Home Retention Network (“HRB”).   This company scammed my clients out of over $16,000 and my clients still lost their home in foreclosure.  After explaining the details of the case, the conversation that ensued was quite shocking and I thought it was important to get the message out.

The N.C. Attorney General’s office is currently investigating 1200 companies engaged in foreclosure defense scams that have, or attempted, to defraud N.C. residences.  There is also a large group of attorneys that have been and/or currently being investigated.  The scam works like this, desperate home owner turns to the internet for information and advice.  The scammers use sophisticated marketing tactics to funnel such searches to their websites where they make over blown and unrealistic promises.  The national news about the continuing foreclosure crisis and bad business practices of the “too big to fail” banks leads some home owners to believe they have more recourse against their current lender and/or servicer than reality would warrant.  As such, they engage the scam company who asks for hefty upfront costs to “enter the program” and then a continued monthly payment close or comparable to the mortgage the home owner used to pay.  The scammer programs include assistance with Mortgage Modification, Quiet Title Programs, House-in-Trust Programs, Bankruptcy filings, and General Litigation, often Pro-Se assistance.  The Attorney General’s office explained that many times the scam company does nothing but collect payments and placates the home owners until the wheels come of the bus, i.e. they home owner looses their home.  The scammer disappears or stops returning calls.

I wonder why people don’t call attorneys under these circumstances, perhaps because they don’t know an attorney that specializes in this area of law, perhaps because they think it’s too expensive, or maybe they figure they can handle the problem themselves.  Regardless of the reason, home owners are getting scammed and/or blindsided not only by the scammers, but by the lenders and servicers as well!

My practice focuses on providing a high quality, high value service to home owners in these situations.  I’ve worked in the real estate and mortgage lending industry for 8 years prior to becoming an attorney.  I’ve even worked in the loss mitigation department of a “too big to fail” underwriting loan modification applications.  I know how the business operates and how the bureaucracy works inside the banks.  In my humble opinion, it’s designed to fail and not provide any relief for the home owner.  That’s why you need knowledgeable, professional assistance in dealing with these situations.  It does not go away on its own.  The wrong steps and/or inaction can lead to a very costly deficiency judgment and no home.  It’s important to do everything you can to avoid this situation.

My foreclosure defense system begins by going on the offensive with the lenders and servicers; demands for documentation, follow-up phone calls to ensure receipt of documents, tracking of phone calls and email, categorizing and chronology of events to build a picture of what is really happening.  I also do a quality control check of your modification paperwork to ensure the numbers are going to work.  I have candid conversations about affordability and reasons for staying versus reasons for moving.  We will discuss HAMP versus HAFA and how each federal program works.  I will prepare your file for litigation regardless if the situation leads in that direction or not.  I evaluate the legal claims under TILA, RESPA, HOEPA, Predatory Lending, and now the National Mortgage Settlement Agreement.  I explore outside help from governmental and non-profit agencies and groups like the N.C. Foreclosure Prevention Fund.  All of these services are provided to help you, the home owner, reach your end goal, whether it’s to stay or to move.  Either way it needs to be handled in a professional, knowledgeable manner.

Let’s work on this challenge together, call for an appointment or send me an email.  Take charge of the situation and take action now.