North Jersey Foreclosure Rescue Operator Back In The News

In Northern New Jersey, The Record reports:

• Kevin and Jean Petterson of Rutherford fell behind on their mortgage payments in mid-2005 after Kevin, a truck driver, broke his ankle and was unable to work for several months. In 2006, facing foreclosure, the couple got a letter from a Scotch Plains company, Elite Financial Solutions, that offered to help "stop the foreclosure process!" It promised "No gimmicks or tricks." But Kevin Petterson, 41, says the company left his family worse off than before -- in deeper debt and in danger of losing their small Cape Cod. "I'm going to have to go Chapter 7 [bankruptcy],'' Petterson said.

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• In a recent interview, Steve French, president and CEO of Elite Financial Solutions, denied any wrongdoing and said Elite Financial should not be lumped in with unscrupulous companies that strip away clients' home equity. [...] Consumer advocates and bankruptcy lawyers say the number of companies offering questionable services to distressed homeowners is on the rise in New Jersey. Phyllis Salowe-Kaye, head of New Jersey Citizen Action, said the group has been receiving more complaints about them since last fall.

For more, see Betting the house (if link expired, try here).

WABC-TV Channel 7's investigative reporter Sarah Wallace recently did an investigative report on Scotch Plains, New Jersey-based foreclosure rescue operator Elite Services and its owner, Steve French. For more on this report, see Investigating foreclosure rescue firms.

Go here to view the pending New Jersey state foreclosure rescue legislation (which is a reintroduction of a bill from the last legislative session), New Jersey Assembly Bill A281 - Foreclosure Rescue Fraud Prevention Act, or go here and enter A281 in "Bill Search" for bill history.

For a related story, see PolitickerNJ.com: Cohen/Schaer/Spencer Bill Granting Subpoena Power To Investigate Foreclosure Consultants Advances.