Homeowners continuing to be plagued by foreclosure scams in Arizona
Foreclosure scams are like insult to the injury of foreclosure and are continuing to plague the harassed homeowners. In Arizona the situation is particularly bad. To help the people a law has been introduced to control the mushrooming of firms’ falsely promising help as regards modifications of loans.
The bill (Senate Bill 1130) is prohibiting “foreclosure consultants” from taking any charges until they have fulfilled their promises – these being sketched out on paper in an inked contract. Thousands of residents of Phoenix have been swindled by these firms with amounts starting from $1,000 and going up to $4,000.
The Attorney General of Arizona Terry Goddard who is giving his support to this legislation said, “Too many homeowners are just happy to have someone offer them help, so they give scam artists all their money and then receive no help and fall farther behind on their mortgage payment.”
Recently a legal suit was filed by the office of Goddard against Asset Creation – a firm based in Phoenix. Its owner Marvin Williamson indulged in fraudulent activities by offering to help in matters of loan modification. The court documents show that Asset Creation took from its customers, fees stretching from $1,680 to $3,430 for promised help. It assured its clients that it would be able to reduce mortgage payments by half.
Warnings were given out by housing advocates to the homeowners to be wary of many such firms who assure reduction. These promises are baseless as none, not even bonafide housing counselors can promise modification of mortgage loan.
The new law would permit the prosecutors of the state to bring charges against those consultants “who engage in conduct that constitutes fraud or deceit against a homeowner” for Class I misdemeanor. It could mean a fine of a maximum of $2,500 plus a prison term of nearly six months.
The harangued homeowners of Arizona have been asked to avail of hotline (877-448-1211) to avail of help that is free from housing counselors (non-profit agencies). They are not included in this legislation.
Recently in the last week of January housing advocates met in Phoenix church to alert the residents about these growing foreclosure scams. The forum was the included in a new initiative started to reach out to religious leaders so that they spread the message about the scams and where the beleaguered borrowers can get help.
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