Monday, September 17, 2007

Illinois AG Sues Upfront Fee Foreclosure Rescue Operator

From a September 14, 2007 Illinois Attorney General Press Release:

[...]

  • Madigan's suit alleges that Florida-based Mortgage Assistance Solutions, LLC, and its managing member Michael Thomas Stoller, of Beverly Hills , California , defrauded desperate Illinois homeowners who enrolled in its “Fresh Start” program by falsely promising to negotiate with the homeowners' lenders to reduce their mortgage payments or save their homes from foreclosure. The company requires an upfront enrollment fee but, in the end, provides homeowners with little or no help.

[...]

  • Madigan's complaint describes how the defendants, in some cases, solicit homeowners by taking advantage of their fear of losing their homes with postcards that read, “YOU WILL LOSE YOUR HOME IF YOU DON'T CALL NOW!!!!” When contacted by potential customers, Mortgage Assistance Solutions refuses to discuss the specific programs available until they receive a $1,200 payment from the homeowners.
[...]
  • The Attorney General is asking the court to order restitution for the defrauded homeowners and to order the defendants to stop all deceptive business practices. The suit also seeks a civil penalty of $50,000 and additional penalties of $50,000 for each violation found to have been committed with the intent to defraud.
For more, see Madigan Utilizes New Law To Sue Mortgage Rescue Company (Attorney General Seeks to Shut Down Business and Obtain Restitution for Distressed Homeowners).

Go here for stories on Mortgage Assistance Solutions and its "Fresh Start" program dealing with homeowners facing foreclosure in Tennessee and Massachusetts.

See Ripoff Report for links to complaints against Mortgage Assistance Solutions.