Court Clerk Warns Against Illegal Upfront Fee Foreclosure Scams In North Carolina

In Davidson County, North Carolina, The Dispatch reports:

• Local residents have recently been targeted by companies promising to save homes from foreclosure, said the Davidson County Clerk of Superior Court. Clerk Brian Shipwash said that while presiding over foreclosure hearings, he learned that several homeowners were contacted by companies offering help to save their homes for an up-front fee, which is illegal in North Carolina. "These companies would promise these people the world, so they'd walk into a hearing thinking everything was taken care of," Shipwash said.

• According to North Carolina law, anyone acting as an intermediary in a foreclosure proceeding is prohibited from charging a fee up front. While there is nothing illegal about helping people in debt, Shipwash said the companies were promising far more than what was possible to deliver. Locals contacted by the companies were quoted from $1,400 to $1,800 up front, and asked to sign a waiver. In return, the company claimed it would communicate with the lender on the mortgage-holder's behalf.(1)

For more, see Beware of scam promising foreclosure help.

(1) According to the story, Shipwash said the three companies - Nationwide Modification Agency and HomeAssure in New York and Davis Foreclosure Assistance in New Jersey - contacted residents by mail, offering to negotiate with the lender to stop foreclosure.