Company Charged with Fraud in Foreclosure Bailout Scam

A complaint filed in Superior Court alleges that several New Jersey individuals and their companies defrauded potentially thousands of financially strapped people in the state, according to a release from the Office of Attorney General.

According to the release, three people, through a company called MVP Home Solutions LLC and its associated entities, charged substantial monthly fees for debt adjustment and foreclosure consulting, but failed to perform the promised services.

“We alleged these defendants shamelessly exploited homeowners who were drowning in mortgage debt and desperate to hang onto their homes; charging them up to $1,625 a month in exchange for foreclosure rescue services that were never provided,” Attorney General Christopher S. Porrino said in the release.

Instead of helping homeowners out of their financial crises, the defendants allegedly made it worse by causing people to fall further behind on their mortgages as they paid for undelivered services with money that could have been applied to their mortgages.

According to the complaint, the defendants were not licensed by the Department of Banking and Insurance, as required by law, to act as debt adjusters or foreclosure consultants.

Consumers who believe they have been cheated or scammed by a business or suspect any other form of consumer abuse can file an online complaint with the State Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.

Read the full article here: http://patch.com/new-jersey/tomsriver/these-n-j-companies-potentially-defrauded-thousands-new-jerseyans-ag