Class Action Blog : Class Action Lawyer & Attorney : Meiselman, Denlea, Packman, Carton & Eberz : Consumer fraud, Personal Injury

With the recent economic downturn, many homeowners are facing the risk of mortgage foreclosures.  Desperate to save their homes, many people are falling prey to the predatory practices of mortgage rescue scams.  Typically, these scams solicit the homeowner with promises of debt relief that often seem too good to be true.  In fact, these are fraudulent offers, designed to prey upon those most in need of financial help.

The Federal Trade Commission (“FTC”) has alerted consumers to look out for five major warning signs of a mortgage rescue scam.  First, they will promise to stop a foreclosure or modify your loan.  Second, they will offer “guarantees,” that your home will be saved, with claims of a 97% success rate.  Third, they usually require fees to be paid in advance.  Fourth, they will advise you to stop paying your mortgage company.  Finally, they may have the look or sound of an official agency or governmental authority.

If you believe you or someone you know has been the victim of a mortgage rescue scam, please contact us to discuss your legal options.

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In the wake of rising unemployment claims and mortgage foreclosures, Spanish-speaking consumers are being unfairly preyed upon by unscrupulous businesses who promise to stop foreclosure proceedings only to have consumers ultimately lose their homes despite paying significant sums of money to such “rescue operation” services.  Recently, in a lawsuit filed in Los Angeles, California the Federal Trade Commission ("FTC") charged a mortgage foreclosure “rescue operation” with falsely promising Spanish-speaking consumers who are behind on their mortgage payments that it would stop foreclosure.  Many people who paid the “rescue service” ultimately lost their homes, and others avoided foreclosure only through their own efforts.  At the FTC’s request, a federal court temporarily halted the defendants’ practices and froze their assets.

According to the FTC’s complaint, the defendants enticed consumers with false claims in Spanish-language radio and magazine ads, and during in-person consultations.  The defendants charged consumers an up-front fee equivalent to each consumer’s monthly mortgage payment, which was typically in the thousands of dollars.  In numerous instances, however, the defendants did not stop foreclosure proceedings from occurring or obtain mortgage loan modifications.

If you have been the victim of a mortgage foreclosure “rescue operation,” please contact us at mdpcelaw.com, or (914) 517-5000.

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