Story URL: http://news.medill.northwestern.edu/chicago/news.aspx?id=142131
Story Retrieval Date: 2/9/2010 8:38:35 PM CST
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foresolexp

http://help-to-stop-foreclosure.net/

Foreclosure Solutions Experts is one business facing charges in Illinois of scamming consumers facing foreclosure.


Foreclosure rescue scam artists still at work in Chicago

by Paul Takahashi
Oct 14, 2009


Related Links

MEDILL Reports: As foreclosures increase, so do rescue scamsNeighborWorks: How to avoid foreclosure rescue scamsList of legitimate foreclosure counselorsFederal Trade Commission's Web site on foreclosure rescue scams

Five tips for avoiding foreclosure scams

1. Work only with a nonprofit counselor approved by the Department of Housing and Urban Development.

2. Don't pay an arm and a leg: You should not have to pay hundreds – or thousands – of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. It is illegal for foreclosure counselors to charge money up-front.

3. Be wary of guarantees: Working with a legitimate counselor can certainly increase your chances of keeping your home, but only your mortgage lender can issue a loan modification or prevent a foreclosure.

4. Know what you are signing – and be sure you sign it: Don't sign any blank forms or let "the counselor" fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.

5. If it sounds too good to be true, it probably is: If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help from the Federal Trade Commission, Illinois Attorney General Lisa Madigan or your local Better Business Bureau.

The most despicable crime, advocates say, is the one that preys on the vulnerable.

As Chicago braces for another record number of foreclosures this year, officials say the tide of so-called mortgage rescue scams has yet to ebb.

Since the Illinois Mortgage Rescue Fraud Act was enacted two years ago, Attorney General Lisa Madigan has sued 28 unscrupulous businesses that charge hefty fees to “rescue” a consumer’s home from foreclosure.

But while state officials say they are prosecuting more scam businesses than any other state, word about free and legitimate services still needs to get out, said Madigan spokeswoman Natalie Bauer.

“Struggling homeowners need to know there is free and legitimate help available,” Bauer said. “[Scam artists] don’t represent you in court, they don’t do loan modifications … all they do is take your money. They swindle desperate homeowners out of money they can’t afford to lose.”

Of the 28 businesses sued by Madigan’s office, Bauer said 12 of those have been decided in the courts.
One, Foreclosure Solutions Experts, which entered into a default judgment in favor of the state this summer, still has a working Web site. Neither of the people who were listed on the suit or the site could be reached for comment.

To help get the message out about foreclosure scams, NeighborWorks America – a national network of more than 240 community and housing organizations – received $6 million from the federal government in April to launch a national consumer awareness campaign that targets 25 cities hit hardest by the foreclosure crisis.

The first public service announcements in Chicago will be rolled out by the end of this month, said Douglas Robinson, NeighborWorks spokesman.

“People need to recognize one thing: If it sounds too good to be true, it is,” Robinson said. “No company can fix a foreclosure situation except the lender.”

Community organizations say the three-pronged approach of an information line, Web site and advertisements will be a boon to free, government-certified and -subsidized foreclosure counselors offering help to people facing foreclosure.

“There are so many good organizations trying to help people, it’s hard to have a scam artist doing this,” said Sandi Murray, director of the Homelessness Prevention Call Center in Chicago. “It’s such an unbelievable crime for this to happen … to take advantage of a vulnerable population.”