Homeowners File Fraud Complaints against Foreclosure Rescue Agencies

by San Antonio Attorney

John M.  Green, a law-abiding citizen, suffered from a heart attack last 2012.  The medical illness left him unable to resume his occupation and fulfill obligation of mortgage payments, he eventually turned to the Litvin Law Firm for financial aid.

According to Green, he paid the Litvin Law Firm a hefty amount of $8,000 for the next two years to negotiate a better deal with the lender of his real estate.  Unfortunately, Green lost his home in the end because the law firm has not done anything aside from receiving his money.

The law firm has declined to release a statement with regards to this issue.  Litvin Law Firm has denied allegations of misleading anyone and even claimed that they have spared clients from their debt such as future payments in mortgage.

After the crash of the housing market in the United States last 2010, almost ten thousand homeowners have claimed that they were conned by law firms, promising to alleviate their current financial situation.

These series of complaints have been compiled by a group of consumer groups, which were organized by the Committee for Civil Rights Under Law.  This group traces companies and law firms that give false reassurances of rescuing distraught homeowners from foreclosure.  The total amounts of complaints have reached more than 46,000.  Almost two thirds of these cases are directly linked to misconduct of lawyers and their firms.

Federal Trade Commission and the Consumer Financial Protection Bureau have already gathered more than $341 million in civil judgments against foreclosure outlets.  Majority of these agencies have collected only 5% of the promised amount.

The number of lawyers suspected to be engaged in foreclosure scams has reached more than 1,000 in the United States.  They have also vexed their state bar associations and the official courts that render licenses to lawyers.  These run the funds that are used as financial compensation for their victims.

Leave a Comment

Previous post:

Next post: