5 Charged in Foreclosure Rescue Fraud

admin —  July 20, 2009 — 10 Comments

Save My Home USA, Madison Heights, Michigan, has been charged with four counts of violating the CSA (43rd District Court, Oakland County).  The company charged victims between $595 and $2,000 before completion of services and advised consumers not to communicate with their mortgage company;

Help4homeowners, Birmingham, Michigan, has been charged with three counts of violating the CSA (48th District Court, Oakland County). The company falsely claimed a 97% success rate, charged before completion of services, and its employee admitted they had no loan training.

Payment Doctors, Livoniao, Michigan, has been charged with two counts of violating the CSA (48th District Court, Oakland County).  The suit alleges that the company made false claims and charged before completion of services.

Michigan Economic Reinstatement Program (MERP), Livonia, and owner Mark Alan Aloe, Farmington Hills, Michigan, was charged with four counts of violating the CSA and one count of unauthorized use of the Great Seal of the State of Michigan (47th District Court, Oakland County). The suit alleges that the company charged victims between $360 and $3,000 before completion of services, made false claims, and used business cards with state seal but did not work for the State of Michigan. Aloe faces 90 days in jail and/or a $1,000 fine.

Attorney General Mike Cox’s office has filed 18 charges against four companies and one individual for committing foreclosure rescue fraud. Cox also issued warnings to 17 companies regarding complaints from residents about their practices. Michigan law prohibits “foreclosure rescue” companies, which provide foreclosure advice, from making misleading or false statements, or charging service fees before any service is completed.

Preying on residents in the process of losing their homes is not only shameful, it’s illegal,” said Cox. “Today we are sending a message that mortgage rescue fraud will not be tolerated.

The charges resulted from the Attorney General’s office conducting undercover operations based on complaints from homeowners and include one count of unauthorized use of the Great Seal of the State of Michigan and 17 counts of violating Michigan’s Credit Services Act (CSA). The CSA prohibits charging fees before completing services when seeking to negotiate a loan on behalf of a homeowner. The Credit Services Act carries a maximum penalty of 90 days in jail and/or $1,000 fine, and allows the Attorney General’s office to seek restitution for affected consumers.

Misleading or false statements made by the companies included guarantees to prevent foreclosure and assertions consumers could avoid foreclosure regardless of their credit score, home appraisal, or debt to income ratio. Victims were charged between $595 and $3,000.

Attorney General Cox also sent letters to 17 other companies warning that their practices may be in violation of state law and requested more information about their business:

1. AFS Loan Modification Corp, Redondo Beach, CA
2. Apply 2 Save, Inc./Apply2Save, Coeur D’Alene, ID
3. Elect Group LLC, Deerfield Beach, FL
4. Equity Recovery Services, Towsen, MD
5. Federal Home Savers, Comniack, NY
6. Financial Solution Center, Corona, CA
7. Fresh Start Home Modification, Woodbury Heights, NJ
8. Fresh Start Program/Fresh Start Mortgage Assistance, Fresh Start Mortgage Solutions, Mortgage Assistance Solutions, Clearwater, FL
9. Hope Now Modifications, LLC, Cherry Hill Twp., NJ
10. IMC Financial, Clearwater, FL
11. Kirkland Young LLC, Miami Beach, FL
12. National Home Loan Assistance Program, San Diego, CA
13. New Hope Loan Modification, Bellmawr, NJ
14. Oceanview Investments, Oceanview Investment Services Corp., Fort Lauderdale, FL
15. Peoples First Financial, San Diego, CA
16. Pope & Associates Mortgage, Ontario, CA
17. Savemtg.com, Galthersburg, MD

A criminal charge is merely an accusation and the defendants are presumed innocent unless proven guilty.

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10 responses to 5 Charged in Foreclosure Rescue Fraud

  1. Fresh Start Home Modifications took $1500 dollars from me promising me to help with a modification. I was contacted regularly until the money was paid in full, and have not heard from them since. Keyonia Carroll was the representative at that time for me. I’m still fighting to save my home and would love to get my money back for being frauded!

  2. beverly ann davis July 31, 2010 at 1:42 pm

    I was scammed by “Fresh Start Home Modifictions on 1/09. I gave them $1500 (my mortgage payment) because they swore they could help. I am disabled and have lived here 16 years but had to refinance. Now my payments are double what they were. I am supporting a 17-year-old daughter and her baby on my income. My house is falling apart (built 1954) and I cannot afford to pay for repairs on top of mortgage. In Jan. 2011 I will loose my daughter’s soc. sec. ($691)and child support ($308) when my daughter turns 18. I have worked so hard to provide a home for my daughter and it probably could have been paid for by now if I had not had to refinance. I live payday-to-payday. I need help. Is there any way I can get my money back?

  3. james and paula burton June 12, 2010 at 7:27 pm

    we too lost 1400.04 to save my home usa we would like to know how we can get included in a refund/law suit or something these people stole our very hard earned money when we were desperate to get help luckily we did not lose our home like some have but only because of hard work and effort on our part.

  4. Nancy Van Rikxoord May 5, 2010 at 9:58 pm

    I gave $2000 dollars to Foreclosure Defense Law Center in 2009 to “modify” my mortgage, needless to say, after months of phone calls, my home was foreclosed in Feb 2010. Wondering if a class action law suit is happening?

  5. I was scammed by Savemyhomeusa for 2995.00 and are now in chapter 13 and will probably end up losing my home. Hope they get justice for this.

  6. If the foreclosure situation in Michigan is any indication of how the atty gen cox would perform as Governor, then lets all get on our knees and pray THAT NEVER HAPPENS.

    What cox fails to realize is that if he had any clue what-so-ever on how to do his job, the fraudulent “rescue” companies he persues would not even have a reason to exist. They exist because Cox does not know a damn thing about securitized mortgages.

  7. I to have been scammed by save my home, has anyone any info on what to do?

  8. I was taken advantage of by Fresh Start Home Modification LLC in new Jersey. I am taking action against them.

  9. I just want you to know that I too have been taken by save my home usa and I am unable to reach them to attempt to get any of money back. If you can help me please let me know.

  10. James Stevenson July 23, 2009 at 12:28 am

    I would like to say all though a bit extreme comment I beleive to have alot of truth. I would like to comment by saying there are many flaws of mr. Cox that have been well over looked due to his political standings , we fail to remember the allogations said that mr. Cox and mr. Kilpatrick had a bit of an encounter at the manioogian manchion. .Now take a look at the big picture we are all aware there alot of scam companies out there trying to take advantage of destressed home owners , so what about the companies that are actually helping ? I think this is a big part of the picture that is being overlooked.

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