Wednesday, July 18, 2007

Foreclosure Rescue Service Sued In Cincinnati For Alleged Failure To Provide Promised Services

Cincinnati-area foreclosure rescue operator Foreclosure Solutions LLC, Tom Bien, and attorney John S. Brooking have been sued by four homeowners in a state court in Hamilton County, Ohio for allegedly running an upfront fee foreclosure rescue scam that promised to save their homes from foreclosure, but did little or nothing in exchange for an upfront fee of $1,150.

According to the lawsuit:
  • "The 'Solution' that Foreclosure Solutions sells to homeowners is the false promise of a foreclosure defense in exchange for an up-front charge of $1,150. After the customer pays the fee Foreclosure Solutions hires an attorney who does nothing more than file an answer to the foreclosure. When the foreclosing lender files a motion for summary judgment, the attorney abandons the case and the house eventually goes to sheriff's sale."

In addition to the upfront fee, the foreclosure rescue arrangement allegedly required the homeowners to deposit their monthly mortgage payments into "escrow" with Foreclosure Solutions.

The lawsuit asserts the following claims: (1) violations of Ohio's Consumer Sales Practices Act & Home Solicitations Sales Act, (2) misrepresentation, (3) civil conspiracy, and (4) infliction of emotional distress. Representing the homeowners are the Legal Aid Society of Southwest Ohio, LLC and Cincinnati attorney Matthew Brownfield.

For a copy of the lawsuit, see Dorn, et al. vs. Foreclosure Solutions, LLC, et al. (lawsuit available online courtesy of WCPO-TV Channel 9 in Cincinnati).

For the WCPO-TV Channel 9 online story, see People With Homes In Foreclosure Say They Were Victimized By Blue Ash Firm.

For The Enquire online story, see Mortgage 'rescue company' faces suit (Homeowners mad at foreclosure group).

Go here for the Press Release (Legal Aid Society of Southwest Ohio, LLC.)