Texas Homeowners in Foreclosure – Beware of Foreclosure Rescue Scheme!

23 Oct Texas Homeowners in Foreclosure – Beware of Foreclosure Rescue Scheme!

The 408th District Court in Bexar County, Texas has issued a temporary injunction against a foreclosure rescue scheme – Foreclosure Assistance Solutions, LLC of Florida and its principal operators, Herb Zerden and Adolfo Quintero, owner John Woodruff, and J.W.W. Services, Inc. (of California). The temporary injunction prohibits them from targeting and deceiving Texans who fall behind behind on their mortgage payments.

According to Texas Attorney General Greg Abbott’s enforcement action, the defendants mailed cards and letters to homeowners whose homes were posted for foreclosure. The promotional material used by defendants boasted they had established relationships with mortgage companies and banks nationwide which would enable them to persuade lenders to refrain from foreclosing on their homes.

Foreclosure Assistance Solutions would then pressure the homeowners who contacted them to sign up with their services – agreeing to pay Foreclosure Assistance Solutions $1200.00. Once the homeowner paid Foreclosure Assistance Solutions the fee, company representatives had very little contact with the homeowners – usually ignoring the homeowner by not responding to requests for information or returning phone calls. Making matters worse, the terms of the contract with Foreclosure Assistance Solutions strictly prohibited homeowners from contacting their mortgage companies directly. The Attorney General’s office recommends that you not wait for Foreclosure Assistance Solutions to contact you about the status of your mortgage. You should contact your lender immediately and ask what preventive measures, if any Foreclosure Assistance Solutions has taken on your behalf.

Unfortunately, this is the typical scenario most foreclosure rescue scams use – take a high fee with promises to stop the foreclosure and then (1) do nothing, (2) tell the homeowner at the very last minute they couldn’t help them and the homeowner should file for bankruptcy, or (3) they prepare a bankrutpcy petition and send the homeowner to the courthouse to file the petition on the day of the foreclosure sale.

In Texas, if you have received a solicitation from one of these outfits, you have very little time before the foreclosure sale – less than 21 days, in most cases. Please do not fall victim to their false promises. You should immediately contact an attorney who is familiar with bankruptcy and foreclosure laws in Texas.

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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