House Foreclosures - Foreclosure Scammers Sued In Minnesota

Foreclosure Scammers Sued In Minnesota

December 10th, 2007

Lawsuits have been file against two firms who cheated house owners facing foreclosure notices by Attorney General of Minnesota, Lori Swanson. These firms – Foreclosure Assistance Solutions of Florida and two sister companies in Nevada – American Housing Authority and American Housing Financial are accused of unlawfully pocketing $1,200 to $1,400 in the name of posing as rescuers. But no assistance was provided. The companies took advantage of the traumatized condition of the borrowers.

In 2004 a state law had been enforced which prohibits foreclosure rescuers from charging any fee until the goods have been delivered – that is stopping or postponing of the foreclosure. The companies in question are facing similar charges in Ohio, Illinois and Texas.

The companies did not respond to a note left by The Associated Press for Foreclosure Assistance Solutions. The contentions of the victims are that they had to pay fees from the very start of the talks. After that nobody picks up the phone at the other end.

Donna Berge is one such sufferer. She got letters by post from American Housing Authority offering foreclosure assistance. The Berge couple had fallen in their payments because of sudden illness and had come up against a blank wall when they tried to contact the lender. Each call was taken by a different person who passed on the buck to another. At this point of despair any sort of help was welcome. Unfortunately after having paid the rescuer $1,395 she found dead silence from their side. Desperately she demanded a refund of the fees but the company evaded the issue by putting the blame on them for providing inaccurate information. The Berge story however came to a happy close. They could keep the house by drawing from the husband’s retirement fund. After she took up the cudgels against the scammers had to cough up the $1,395.

Unfortunately another victim, Steven Paquette of Andover has yet to get back $1,200 paid to Foreclosure Assistance Solutions. The company has not responded to repeated written reminders. Paquette was lucky to get the help of his parents to manage the mortgage. It was most unfortunate that he got cheated of the hard earned money he was earning to repay his parents.

Attorney General Swanson sent out a general message asking all those in foreclosures trouble to seek the help of her office. Alternatively they should contact those organizations that did not charge any fee.