Bogus foreclosure rescue firms targeted

CINCINNATI - When John and Diane Wieman faced foreclosure on their Green Township home, offers from foreclosure rescue firms began to fill their mailbox and computer e-mail.

“There were probably dozens of pieces of literature that would show up,” John said.

However, the couple became leery of the promises being made.

“Several of them wanted money up front to help save your house,” Wieman recalled. “Others wanted to show you how to sell your house, make a profit and not lose it.”

The Wiemans chose to contact the Home Ownership Center (HOC), a HUD-approved foreclosure counselor – and because of that decision were able to keep their house.

“You don’t need to be a victim of this,” said Home Ownership Center president Rick Williams. “There are plenty of opportunities to get the services you need for free. You do not have to pay for them.”

Foreclosure has hit 500,000 Ohioans in the past 10 years and many of them have been victimized by foreclosure rescue companies.

That’s why HOC is joining the Ohio Attorney General and other non-profits Wednesday for the first statewide Anti-Scam Initiative. The kickoff is at 10:00 a.m. on Fountain Square.

“Consumer education is the best way to prevent foreclosure problems,” said Chris Wagner, the attorney managing the Cincinnati Office of Ohio Attorney General Richard Cordray. “When a family faces foreclosure, you want to believe that rescue firms can help you.”

However, Wagner added there’s no guarantee in any legal matter.

Williams pointed to one homeowner that came to the HOC on Monday. He paid a so-called rescue firm $3,000 to handle his foreclosure, but instead was re-victimized.

“They did not pay their mortgage in order to do that,” said Williams. “Now, they’re in more trouble with their lender and they can’t get in touch with the company any longer because they’ve already paid the fee.”

Wagner called that a “classic scam” where someone promises something too good to be true.

“They’re going to want all payments directly to them,” he said. “They’re going to want them wired. They’re going to want a certified check. These are the red flags.”

While he agreed the process can be frustrating, Williams said homeowners shouldn’t get involved with an unknown rescue firm.

“It just sets you back,” he said. “It does not move you forward.”

The Wiemans said they’re glad they didn’t travel down the wrong path.

“We’ve been fortunate,” John said.

Williams, Wagner and others helping foreclosure victims hope others will be as fortunate.