Foreclosure Rescue Companies Prey On Unsuspecting Homeowners
The ongoing mortgage foreclosure crisis has sparked a cottage industry of so-called “foreclosure rescue” companies. But advocates and government officials warn that a significant number are little more than fraudulent operations designed to separate distressed homeowners from their money, and sometimes their houses as well.
Because of the role the mortgage industry plays in the nation’s economy and the types of crimes mortgage fraud represents, these companies have even drawn scrutiny from the FBI. The feds currently have nearly 2,350 mortgage fraud cases, up almost 400 percent from five years ago.
Even for wary consumers, it may be hard to tell if the line being thrown by a company will sink you. A letter sent out earlier this month by Bridgewater, N.J.-based Financial Solutions Today LLC is a good example of the difficulty assessing a company. The letter is designed to resemble a W-2 or other form from the Internal Revenue Service, with boxes across the top and a similar typeface.