Foreclosure consulting firms sued for fraud

In the last post, I discussed the Attorney Generals attempts to prevent fraud against homeowners facing foreclosure. The following are several companies under investigation for allegedly fraudulent practices:

National Foreclosure Counseling Services Corp: The Attorney General's Economic Crimes Division determined that National Foreclosure Counseling Services Corp sent mailings to homeowners facing foreclosure implying that they were a government agency, claiming that the recipients had been selected for special programs and stating that this was the last attempt to assist the homeowner before foreclosure. The Attorney General has filed suit, claiming that National Foreclosure charged up front fees and failed to perform services following payment.

Keep Your Property Inc: The Attorney General's investigation revealed that Keep Your Property promised homeowners facing foreclosure that it would prevent foreclosure, negotiate a lower interest rate with the lender and lower the principal balance of the mortgage. Keep Your Property Inc also charged a large upfront fee and it was reported that the company made no contact with the lenders.

Mortgage Crisis Solutions LLC: The Miami based firm is accused of charging large up front fees, not providing services and improperly advertising legal services and counsel.

Homeowners facing foreclosure should be familiar with the Florida foreclosure fraud law and know that non-attorney firms and "foreclosure consultants" cannot charge upfront fees. Non-lawyers cannot provide legal advice either. And no one can guarantee that there services will "stop" a foreclosure. Homeowners should be suspicious of any of these tactics.

If you have been sued for foreclosure, it is highly recommended that you consult with an attorney and discuss your rights and options.