Local Mortgage Foreclosure "Rescue" Consultants earn an "F" Rating from the BBB

5/19/2009

Fort Worth, TX – While desperate times may call for drastic measures, an alarming trend appears to be emerging among some mortgage foreclosure rescue consultancies.

This burgeoning industry has grown exponentially in recent years due to high foreclosure rates across the nation. The implied goal of these consultants is to help you keep your home; often through creative measures. Where there is extreme business creativity paired with people acting out of desperation, sometimes there are also unethical business practices.

The Better Business Bureau® at Fort Worth began to receive complaints as early as 2000 regarding various companies, but has experienced a significant rise in the last 24 months.

Two local companies have each earned an "F" rating from the BBB based on trends in their business practices.

The BBB began receiving consumer complaints in 2007 about Keller-based United Financial Solutions (UFS) and its owner, Emanuel Taylor. Most complaints focus on sales practices and perceived breach of the refund policy. A majority of complainants lost their homes despite contracting with UFS. In September 2008, the Federal Trade Commission (FTC) entered into a stipulated permanent injunction and final order with UFS, stemming from alleged "deceptive acts or practices in connection with the marketing and sale of mortgage foreclosure services."

Meanwhile, Richland Hills-based, Your Mortgage Solutions (YMS) has been accruing complaints at the BBB since 2005. The complaints nearly mirror the warning signs in an FTC 2008 article "Foreclosure Rescue Scams: Another Potential Stress for Home owners in Distress." With one exception, the complaints alleged against YMS repeat the same series of events and final outcome. Consumers are contacted at their residence by Duane Hatchett or another YMS representative after obtaining the homeowner's name from public foreclosure documents. YMS guarantees that they can stop the impending home foreclosure for an upfront fee. Despite payment of $1,000 or more, the home is foreclosed on. YMS then refuses to refund the fee based on their contract which states that the fee is non-refundable.

Hard times can leave you looking for a magic solution to an untenable situation. However, the BBB advises you not to allow desperate circumstances to drive you to companies which may be willing to prey on your circumstances. The Federal Trade Commission offers these "red flags" to watch for when looking for help:

    Avoid any business that:
  • Guarantees to stop the foreclosure process – no matter what your circumstances
  • Instructs you not to contact your lender, lawyer, or credit or housing counselor
  • Collects a fee before providing you with any services
  • Accepts payment only by cashier's check or wire transfer
  • Encourages you to lease your home so you can buy it back over time.
  • Tells you to make your mortgage payments directly to it, rather than your lender
  • Tells you to transfer your property deed or title to it
  • Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
  • Offers to fill out paperwork for you
  • Pressures you to sign paperwork you haven't had a chance to read thoroughly or that you don't understand

If you think you've been a victim of foreclosure fraud, contact the Better Business Bureau, Federal Trade Commission and the state Attorney General.

For more helpful information, visit the BBB website www.fwbbb.org.