Foreclosed Texas Homeowner Accuses Loan Modification Firm Of Taking Money, Doing Nothing

In Fort Worth, Texas, the Fort Worth Star Telegram reports:

• First the mortgage payments went up after he refinanced; then he broke his collarbone and was out of work for months during rehab. When the bills began to mount and Ramiro Diaz found himself behind on the mortgage in August 2006, he contacted Your Mortgage Solutions in North Richland Hills. A representative promised Diaz that the company would intercede to help prevent the lender from foreclosing on the family home, Diaz said.
  "I paid him $1,500," Diaz said. "He said, 'I got you covered.’"

• Instead, like other homeowners across the country, the North Richland Hills man and his family lost their house to foreclosure in what appears to be a nationwide outbreak of mortgage "rescue" operations that aren’t rescues at all.

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• A Your Mortgage Solutions representative rebuts Diaz’s complaint, saying Diaz did not complete necessary paperwork or submit a separate attorney’s fee on time. "They can’t just send the paperwork back without the attorney’s fee," said Duane Hatchett, YMS’ director of operations.(1) "He [Diaz] knows he didn’t send it back."

For more, see Beware of foreclosure 'rescue' outfits, feds say.

(1) Non-attorneys that solicit, advertise or otherwise offer legal services to homeowners for mortgage foreclosure defense and/or foreclosure-related rescue services, collect legal fees on behalf of an attorney, and/or make a business to solicit or procure legal business for attorneys is generally illegal in other states. I suspect Texas may have a similar law.