Victims of Foreclosure Rescue Fraud to Receive Refunds
LANSING, MI - September 17, 2009 - (RealEstateRama) –Attorney General Mike Cox today announced that Michigan residents victimized by foreclosure fraud schemes can receive refunds as a result of charges filed against SaveMyHome USA, Payment Doctors and the Michigan Economic Reinstatement Program. The companies were held accountable after an undercover investigation by the Attorney General’s office discovered that the companies’ representatives made misleading statements and charged borrowers upfront fees in violation of the Michigan Credit Services Protection Act.
“Families already facing a foreclosure crisis should not have to worry about being ripped off in the process,” said Cox. “This sends a clear message to scam artists that we are watching.”
The companies offered mortgage modification assistance to homeowners facing foreclosure. They claimed they would help homeowners by working with their lenders in an attempt to modify the borrower’s mortgage.
However, an undercover investigation by the Attorney General’s office discovered that the companies charged borrowers upfront fees, a practice prohibited by law. After paying the upfront fee, many borrowers found that the companies could not secure a modification and were subsequently unable to get their money back.
Each company pleaded no contest to one count of violating the Michigan Credit Services Protection Act. They also agreed to provide the Attorney General’s office with customer lists that will be used to determine how many customers are entitled to restitution for fees paid for services that were never provided. Further, the companies have agreed to have all their employees sign an acknowledgement of their responsibilities under Michigan law and the penalties for possible violations. Final sentencing hearings will be scheduled in the next 30-60 days, during which companies could be subject to fines.
While the companies are based in Southeastern Michigan, it is believed they had customers around the state.
Attorney General Cox urges any consumers who paid fees to SaveMyHome USA, Payment Doctors, the Michigan Economic Reinstatement Program, or any other mortgage modification company for services that were not provided, to contact the Attorney General’s Consumer Protection Division at (877) 765-8388.
Cox reminds homeowners they can find foreclosure information on his website at www.michigan.gov/avoidforeclosure. The website includes contact information for government agencies and debt counselors, and also offers tips for those facing foreclosure, including:
- Homeowners are never required to pay to speak with their lender or servicer.
- Â Homeowners do not need to pay for outside assistance. Free assistance with foreclosure issues can be found by calling the Michigan State Housing Development Authority at (866) 946-7432.
- If you do hire outside assistance, never pay up front for help with negotiating your loan or working with your servicer.
Attorney General Cox has made prosecuting mortgage fraud a priority for his office. In 2008, Cox created a mortgage fraud unit, teaming with the Michigan State Police and other law enforcement agencies to tackle consumers’ complaints. Cox’s office has charged 21 people or companies with a mortgage fraud-related offense in the last 12 months alone. Cox’s office also conducted several mortgage foreclosure forums to help families stay in their homes during these difficult times
Contact: John Sellek or Nick De Leeuw 517-373-8060
Comments
I have Paid in full for loan modificationfor the amount of $2995.00 back in March 26 th of 2009 and they dint do anything to help us in our modification please help me to obtin my refunt.
thansk Marcelino.
I paid $850 to SMHUSA. Contact Michigan Attorney General Mike Cox’s office and file a complaint on line. His office went to court against SMHUSA and similar companies. They are working on restitution for us.
I gave a company by the name of Mortgage Auditors of America in Southfield, Michigan $2,000 dollars for a forensic audit. I didn’t get anything and they have moved.
I sign up with your company on 12-21-09 and gave you a total of $1,600.00 to dodo a oan modification and all they did was take my money and run i want my money back
I sign up with your company on 12-21-09 and gave you a total of $1,600.00 to do a can modification and all they did was take my money and run i want my money back
I sign up with Mortgage Auditors of AMERICA on 12-21-09 and gave you a total of $1,600.00 i want to know if i am going to get my money back
Thank you so very much. I sent a complaint to the Michigan Attorney General in Michigan. Everyone that was scam out of their money should get a class action suit.
i too filed a claim with the attorney general today against savemyhomeusa and marzen baldonado who represented their company in june/july 09. it is now a year later and i got no help from them and they cashed a check from us in the amount of $1373.94 which i hope will get refunded to us by someone since cox said the company was told to give them a list of people they frauded???? just wanted to make sure we made it to that list.
we all who was scam will like to know will we be getting our money back. we been waiting a very long time,i was with Mortgage Auditors of America they took $1,600 from me, I really would like to know when will all of us get our money back.
I live in Ohio and was scammed by SMHUSA. I filed a complaint with Michigan AG office over a year ago. I wrote them a letter a few weeks back asking about the status of our refunds. I received a letter in response, basically stating that the “judge” did not agree on refunding everyone. They did not say why or who are the people who got refunds. Apparently, they are going back to court, but who knows. I think everyone should call the AG and demand better communication. If you are out of state, get your state’s AG involved.
It is not fare that Mortage Auditors of America got away with $1,600 of my money and did not give no service they ran off with my money and i am so fare behin i can catch up. I put a complain to the attorney general office he isnt helping it is ike he dont care but he want to be mayor.How they the judge isnt going to give everyone a refund it look like he dont care if it was his money or one of his family member he would help them plus we dont no who will get there money back and why others wont. The who legal system is mess up.The law,the judge. and the attorney general need to put theirselves in our shoes. the whole thing was handle wrong.
i meant i cant catch up i am about to go into foreclouse if i am not already there Mr attory general u have to do something i m so angry help us all get our money back my sister chanelle sanders went though the same company i did she should get her money back to everyone should
i meant i cant catch up i am about to go into foreclouse if i am not already there Mr attory general u have to do something i am so angry help us all get our money back my sister chanelle sanders went though the same company ifeel she should get her money back to, everyone should we all want what is owed top us thats all now days u cant waste money
Anyone who has filed a complaint with the Michigan Attorney General’s office against any foreclosure rescue company should continue to call, write, and email the AG office and to the Federal Justice Department. MAKE SOME NOISE… it’s the only way to get things done….
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Hi. This Joy Thao. I was a victim of the scam call save my home usa in Michigan. I was scam $3000.00 and they didn’t do anything about the modifcation. I try getting touch with them by calling and email but was never return till one late september 2009 I try one more time and the phone was disconnect. The agent in Mn work for them has took off and and phone was also diconnect too. Last time I spoke to the agent his name is Blong Thao and Mai zer. Blong the agent told me that company just took off and for me to just wait and see if the owner will go to jail. He also told me to call back in 1 or 2 months to check up but I try few time and his phone was no longer in service. He was suppose to email me all my information with private ssn and tax form. My husband was also inculde too. Someone who knows about these information, Please contact me at 651-373-2179 or 612-232-6647. I want my refund back.