FTC Makes Another Foreclosure Scam Crackdown

On September 18, 2012, the Federal Trade Commission unsealed an indictment against three groups. The indictment alleges that they all made false claims that they could help distressed homeowners avoid foreclosures. The MARS violations were supposedly committed by:

  • Reaching U Network and Prime Legal Plans for allegedly violating the FTC rules for telemarketing sales.
  • The Orange County firm American Mortgage Consulting Group, which also does business as Home G Solutions Group and Home Guardian Solutions, for allegedly violating the MARS rule.

The Mortgage Assistance Relief Services (MARS) rules were put in place to stop companies from collecting fees for rescuing distressed homeowners from foreclosure and providing loan modification services before an offer from the lender has been accepted by the homeowner.

It’s disgusting that these companies are still taking advantage of distressed homeowners hoping to avoid foreclosure. It’s also sad that homeowners still don’t know that HUD and other government agencies have set-up non-profit organizations to provide these services for free.

If you’re a distressed homeowners facing foreclosure, seek out a HUD certified housing counselor for assistance.