Florida, Texas Upfront Fee Foreclosure Rescue Operators Targeted By FTC

The Federal Trade Commission announced last week:

• As part of the Federal Trade Commission’s intensified efforts to protect consumers from mortgage foreclosure rescue scams, the agency has filed two lawsuits charging six individuals and their businesses with falsely claiming that they will stop foreclosure. The FTC will seek to bar them from further violations and make them forfeit their ill-gotten gains.

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• In the first case, Florida-based Mortgage Foreclosure Solutions, Inc., Debra Behrens, and Michael Siani are charged with falsely representing that they will stop foreclosure in all or virtually all instances, in violation of the FTC Act, which prohibits unfair and deceptive acts or practices. They allegedly claim that they can stop foreclosure regardless of consumers’ hardships or payment histories, stating in one such claim, “We are so confident of our abilities to provide you with a solution in stopping your foreclosure that we guarantee our services in writing to you.” [...] According to the FTC’s complaint, [...] the defendants allegedly charge a $950 advance fee and a $250 processing setup charge, and, after receiving consumers’ money they fail to provide updates about the foreclosure proceedings or return consumers’ telephone calls. [...] Many consumers ultimately lose their homes to foreclosure, and others avoid foreclosure only through their own efforts.

• In the second case, the defendants, all based in Texas, are National Financial Solutions, LLC, National Hometeam Solutions, LLC, United Financial Solutions, LLC, Nationwide Foreclosure Services, LLC, Evalan Services, LLC, Elant, LLC, Elias H. Taylor aka Eli Taylor, Everard Taylor aka Everardo Taylor, Emanuel Taylor, and Edwin P. Taylor, Sr. aka Ed Taylor. They are charged with violating the FTC Act by falsely representing that they would stop foreclosure in all or virtually all instances, and that they would refund most or all fees if foreclosure could not be stopped. [...] In phone calls with consumers, they also claimed that, for an up-front fee ranging from $500 to $1,200, they could stop foreclosures on specific homes and would provide options other than filing for bankruptcy [according to the FTC complaint].

For more, see FTC Sues Two Mortgage Foreclosure “Rescue” Operations.

To view the two FTC lawsuits, see:

• FTC v. Mortgage Foreclosure Solutions, Inc., et al. (U.S. District Court - M.D. Fla.), and
• FTC v. National Hometeam Solutions, LLC; et al. (U.S. District Court - E.D. Tx.)