Texas AG Sues Upfront Fee Foreclosure Rescue Operator; Assets Frozen

National upfront fee foreclosure rescue operator Foreclosure Assistance Solutions of Clearwater, Florida has been sued again by a state Attorney General. Last month, it was sued by Ohio Attorney General Marc Dann (see State of Ohio vs. Foreclosure Assistance Solutions - doing business as Second Chance Mortgage). Now, it's the Texas Attorney General.

From the Texas Attorney General's Sept. 14 press release:

• Texas Attorney General Greg Abbott today charged a business with operating an unlawful foreclosure rescue scam that targeted struggling Texas homeowners. As a result, the 408th District Court issued a temporary restraining order and froze assets belonging to three businessmen who organized the scheme. According to court documents, the defendants fraudulently advertised that they could save homeowners from imminent foreclosures.

• The defendants named in the petition are: Foreclosure Assistance Solutions, LLC of Florida, and its principal operators, Herb Zerden and Adolfo Quintero, as well as J.W.W. Services, Inc. of California and owner John Woodruff. Under the temporary restraining order, the defendants must stop falsely soliciting distressed homeowners immediately. Although the temporary restraining order only applies in Texas, homeowners nationwide are protected by the state’s asset freeze.

[...]

• Homeowners who contacted Foreclosure Assistance Solutions were urged to sign a $1,200 contract immediately. Under the contract, Foreclosure Assistance Solutions strictly prohibited homeowners from contacting their lenders. After homeowners paid the fee, they rarely heard from the company’s representatives again. When homeowners repeatedly called the company for answers, they were ignored. As a result, many homeowners still lost their homes to foreclosure.

[...]

• The Attorney General seeks court-ordered restitution for homeowners who were harmed by the defendants’ acts, as well as civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act. Additionally, the Attorney General requests up to $5,000 per violation for the defendants’ failure to register the business as one that conducts telephone solicitations.

For more, see Texas AG Press Release - Attorney General Abbott Charges Foreclosure Rescue Firm with Operating Unlawful Scam (Court freezes assets of Foreclosure Assistance Solutions).

Go here for a copy of the Texas AG's lawsuit - State of Texas vs. Foreclosure Assistance Solutions, et al.

Go here for Texas AG's temporary restraining order against Foreclosure Assistance Solutions.

Go here for a sample of a solicitation used by Foreclosure Assistance Solutions to allegedly dupe homeowners in foreclosure.

Go here for a promotional video used by Foreclosure Assistance Solutions.

See Ripoff Report for links to other complaints against Foreclosure Assistance Solutions.