WASHINGTON, DC, April 6, 2009—Federal and state officials today announced a new joint crackdown on the proliferating residential foreclosure rescue scams.
At a morning press conference today, officials said some results of the crackdown are already in play.
They point to the Federal Trade Commission which has just won a $1.2 million judgment against Clearwater, FL-based Mortgage Foreclosure Solutions Inc.
In a separate pending court case in California, the FTC has won a temporary restraining order and had the company’s assets frozen at National Foreclosure Relief Inc. in Santa Ana, CA.
At a morning press conference today, officials said some results of the crackdown are already in play.
They point to the Federal Trade Commission which has just won a $1.2 million judgment against Clearwater, FL-based Mortgage Foreclosure Solutions Inc.
In a separate pending court case in California, the FTC has won a temporary restraining order and had the company’s assets frozen at National Foreclosure Relief Inc. in Santa Ana, CA.
The FTC charged the company and its two officers with violating the Federal Trade Commission Act by falsely representing that it will stop foreclosure in all or virtually all instances, and that it will give full refunds if foreclosure is not stopped.The company’s two officers were identified in the FTC’s court complaint as David Ealy, also known as Hugo Tapia, and Chele Stone, also known as Chele Medina.
The FTC complaint alleges National Foreclosure Relief charged homeowners from $300 to $1,000 to begin its nationally advertised “Fresh Start” foreclosure rescue plan.
After the fee was paid, the company halted all phone and written contact with the homeowner, the FTC complaint states.
In the case against Florida-based Mortgage Foreclosure Solutions Inc., the FTC charged the company with soliciting fees ranging from $250 to $1,200 from financially-strapped homeowners.
Like National Foreclosure Relief, once the fee was received, Mortgage Foreclosure Solutions stopped all contact with the homeowner, the FTC states.
The FTC reported Mortgage Foreclosure Solutions didn’t have enough assets to pay off the $1.2 million judgment and so the agency agreed to suspend all but $8,320 of the judgment amount.
However, if FTC investigators find additional assets belonging to the company or its officers at a later date, the agency obtained court approval to seize the assets at that time.
The FTC complaint alleges National Foreclosure Relief charged homeowners from $300 to $1,000 to begin its nationally advertised “Fresh Start” foreclosure rescue plan.
After the fee was paid, the company halted all phone and written contact with the homeowner, the FTC complaint states.
In the case against Florida-based Mortgage Foreclosure Solutions Inc., the FTC charged the company with soliciting fees ranging from $250 to $1,200 from financially-strapped homeowners.
Like National Foreclosure Relief, once the fee was received, Mortgage Foreclosure Solutions stopped all contact with the homeowner, the FTC states.
The FTC reported Mortgage Foreclosure Solutions didn’t have enough assets to pay off the $1.2 million judgment and so the agency agreed to suspend all but $8,320 of the judgment amount.
However, if FTC investigators find additional assets belonging to the company or its officers at a later date, the agency obtained court approval to seize the assets at that time.
Cindy Liebes, the FTC’s assistant regional director, says foreclosure rescue schemes are surfacing across the country. The recession, job losses and the real estate crisis have spurred the growing number of predatory rescue schemes as homeowners worry over the loss of their homes, Liebes says.Participating in today’s telephonic press conference at the Treasury Department were Treasury Secretary Timothy F. Geitner, (top right photo) Department of Housing and Urban Development Secretary Shaun Donovan, (middle right photo) FTC chairman Jon Leibowitz (middle left photo) and Illinois Attorney General Lisa Madigan. (bottom left photo)
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