Local residents hit by latest foreclosure relief scam

The Federal Trade Commission has filed three separate suits in federal court to halt the allegedly deceptive tactics of three operations that preyed on distressed homeowners by falsely claiming they could save their homes from foreclosure, and then charging them thousands of dollars up-front, while delivering little or no help and often driving them deeper into debt.

Dave Horn, attorney in the FTC’s Northwest Regional office in Seattle, said investigators are still reviewing files but that “several” Washington state residents are involved including a critical declaration from an Auburn woman.

“Unfortunately, these guys are getting better at hiding what they do,” Horn said. “It can be a very expensive and trying experience for consumers.”

The FTC is suing American Mortgage Consulting Corp., Expense Management America and Prime Legal Plans/Reaching U Network. The FTC claims the companies are in violation of the Mortgage Assistance Relief Services, which bans mortgage foreclosure rescue and loan modification services from collecting fees until results are produced.

These companies, the lawsuits allege, would provide “services” such as forensic audits for $750 a month. Another charged an upfront fee of $1,495 to $4,495. One company even posed as a charity.

One promotion brochure from Expense Management America, explicitly told consumers they must follow the “Golden Rule,” which was to cease communicating with their creditors and let the defendants do the talking.

According to the FTC, the defendants failed to produce any of the promised results.