A new law - Senate Bill 1130 - is putting a stop to foreclosure consultants or mortgage rescue companies charging fees in advance of their services rendered. It's been a big problem for thousands of people who paid up-front fees and then got nothing in return.
In fact, the Arizona Republic reported last week that the Scottsdale-based Guardian Group is being sued by the Arizona attorney general for deceiving more than 2,500 homeowners into paying up-front fees for mortgage reductions that the homeowners allegedly didn't receive. These up-front fees were quoted as $1,595 per mortgage reduction and added up to millions of dollars that the firm raked in.
Foreclosure-help scams like this have ultimately cost struggling homeowners more than just the fee - they have often lost their home in the process.
The Senate Bill 1130, which I mentioned earlier, prohibits "foreclosure consultants" from collecting any fees until they have completed all the services they promise, with the services outlined in a signed contract. The Republic reported that "thousands of Phoenix-area homeowners have paid home-loan modification firms up-front fees ranging from $1,000 to $4,000 and then received no help."
The article went onto look into a separate legal action issued by the Arizona Department of Financial Institutions against the Guardian Group for acting as a mortgage broker without a license.
Read more about "Thinking of Foreclosing on a Phoenix Home? You Have New Protections," at MyPhoenixmls.com blog
Comments(0)