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Southside Foreclosure Firm Accused of Scamming Homeowners

@ April 7, 2009 5:30 AM Permalink | Comments (2)

A Baymeadows-based firm promising quick foreclosure help for struggling homeowners is now accused of scamming customers by the Attorney General's office.

"I thought these folks had more knowledge and different avenues to approach our mortgage company," Royce Belle, a Jacksonville homeowner who enlisted the help of National Foreclosure Counseling Services, said. "They did not."

Belle's story is one state investigators say is being told and re-told all over the country by homeowners contacted by NFCS.

"We recieved a letter from National Foreclosure Services stating that they were able to help us lower our payments," he tells WOKV. "The said they'd charge us $2, 044 to get our mortgage modified."

Belle admits he took the bait; paying the fee and hoping to clear up rising mortgage payments and keep his home. But weeks turned into months, and Belle says he never heard from NFCS. Eventually, he says, NFCS presented a re-financing plan that actually raised his monthly mortgage payment a dollar.

"We told them that doesn't make any sense," he said. "Nothing changed. We told them they didn't actually do anything for us."

When Belle decided to cut ties with the company and demand a refund, he claims NFCS threatened to bankrupt him. He's now suing the company in small-claims cout.

"They offered 500 dollars which I rejected," Belle says. "I just don't think it's right that they should profit for breaking the law."

"No one is allowed to charge an upfront fee for foreclosure-rescue service. So, if you are in need of this service and are exploring the idea of someone to help you, if they ask you for the upfront fee, you know that they are doing something wrong," Regional Deputy Attorney General John Pare told Channel 4.

Attorneys General in Illinois and Minnesota are also suing National Foreclosure Counseling Services.

The costly lesson for Royce Belle is still playing out in court and could take months to resolve. He hopes his story serves as a reminder for other homeowners suddenly facing foreclosure and looking for options.

"Just give your mortgage company a call," he says. "Don't get in trouble with these foreclosure rescue people. It's something you can do on your own for free."

National Foreclosure Counseling Services was contacted by WOKV. The company says it is reviewing the lawsuit from Florida's Attorney General and does not yet have a comment.

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What others are saying

The laws are hurting the people
I understand there are scam artist that have taken advantage of homeowners, shame on them and lock them up, which may include this company that did not communicate with the borrower. There are legit companies that actually are specialists in the workout options and negotiating and the law is holding them back. You would be surprised how many homeowners contact me that have been rejected by their bank and the non profits gave bad info. Homes are going to sale that if they had help from real experts could have saved the homes. Government get with it and stop the witch hunts and legitimize the ethical and expert services. The government is now as guilty as the banks that gave the bad loans. Starting with and Federal Reserve Chairman Ben Bernanke, Treasury Secretary Timothy Geithner and their boss. They are trying to help but have a few bad policies.
By foreclosure help @ 04/12/09 10:06:32 AMreport abuse
Unfortunately, trying to negotiate a foreclosure on our own is not so easy due to the fact that lenders are not cooperative. Non for profit, can help only if the lenders agrees to do the modification if not then they advise bankrucpcy. I think that for as long as the lenders are not force by the law to negotiate a loan work out before initiate a foreclosure, there wound be a real change.
By Rene Lugo @ 04/07/09 07:48:50 AMreport abuse