The Federal Trade Commission has charged National Foreclosure Relief Inc. with falsely claiming that it would stop foreclosures or fully refund consumers' money. The foreclosure "rescue" company would target homeowners facing foreclosure with postcards that claimed to have approved them for a "Fresh Start Program" that could save them from foreclosure.
The postcard said:
"We are happy to inform you that you have been pre-approved to have your current mortgage, including your past due payments, wrapped into a new loan ... Following final approval, our program may allow any foreclosures proceedings to be stopped."
Those homeowners facing foreclosure who contacted the company were charged fees ranging from $300 to $1000. After paying the fee the homeowners were unable to contact the company and no new loan was granted to save them from foreclosure.
It is a relief that the Federal Trade Commission is going after these scammers. But I'm sure there were several people who lost their home to foreclosure because they wasted time and money with these foreclosure scammers. For anyone who may still have doubt, the only program known to give debtors a fresh start financially is bankruptcy.
Only the bankruptcy court has the power to wipe out past debts. Please do not waste your time with people claiming to have the power to save you from foreclosure, they are scammers. If you are facing foreclosure speak with a bankruptcy attorney to find out what bankruptcy options are available to save your home.