Jefferson City, Mo. – Attorney General Chris Koster today filed suit against a California company that defrauded Missourians looking for help avoiding mortgage foreclosure. Koster said the company, US Foreclosure Relief, took money from victims but did not provide any help.
“Unfortunately, these tough economic times have brought out opportunists who prey on people at some of their most desperate and vulnerable moments,” Koster said. “People facing the loss of a home may feel that they have no other choice but to turn to these fraudulent companies. The Attorney General’s Office intends to stop them from doing business in Missouri,” Koster added.
Attorney General Koster said US Foreclosure Relief advertised that they would work with a homeowner’s lender to stop further foreclosure proceedings. However, the Attorney General’s office found the company would take customers’ money, provide no services, and subsequently refuse to respond to consumers who wanted to complain or get their money back.
The suit, filed in Kansas City, seeks an injunction to stop the company from continuing to defraud consumers as well as restitution and penalties.
In most instances, US Foreclosure Relief charged homeowners a fee of $1,850 for its services, along with a processing fee of $500. The company demanded payment upfront, in violation of Missouri law. Missouri law is clear that payment may not be charged or collected until the foreclosure consultant service is performed.
“People need to be very cautious when considering turning to foreclosure consultants,” Koster said. “In fact, in most cases, people are better off working directly with their lenders.”
Attorney General Koster urged consumers who have been the victims of fraudulent mortgage-relief companies, or who are concerned about the practices of their lender, to contact his consumer hotline at 800-392-8222 or to go online at www.ago.mo.gov.
{ 5 comments… read them below or add one }
I live in San Bernardino, Calif and got scammed by this company. Is there any recourse thur your suit i can use to recover my loses as well. Thanks 909 841-1808
This company helped my family from losing my home, there are allot of companies out there that are scams but one thing i understand about this is if you get all the paperwork in to them on time they will work on it. I subbmited all my documents and got a killer plan!!!
Thank You Thank You, finnaly someone has head us. We have been victoms of this company that calimed they would help , but all they did was cause us stress and bad credit, I have a paper trail in emial form. Her they tell us things i felt where worng. If you would like them i would love to send them to you. i will part of a class action law suite if you need me.
Excuseme!!! they are some people and companies that really help people in this crisis. I whish someone helped me. I got my huose sold at aution last year 100K more than my balance and these Broker from san Francisco Ca Raymond GRINSELL just went to pretent he was helping me when in reallity just want to check my home to buy direct from the bank! that rober! he bough my house from aution himself!! and sold it at $ 1,200- he paid $ 649K my balance of the note!! who help those like me??? not GRISELL….remember is a broker in SAN Francisco CA Founders Realty!!!! amen
I have talked with and received paperwork with this company to start a loan modificaton. They want 2,900.00 up front and will not start procedure until they have the upfront money. I think the fee is a lot and I don’t have that kind of money.