Bankruptcy Indiana

As I've said before, there are scams for every season and then some.  Since, for the past year, we've been in foreclosure "season", scams involving foreclosure consultants have been on the rise.  Just in the last two years, many companies have been sued by the Indiana Attorney General, and since January of this year, Indiana Attorney General Greg Zoeller's Homeowner Protection Unit has sued no fewer than eight foreclosure consultant companies, the latest being National Foreclosure Consultant Services.

While the bankruptcy court system has not been empowered by Congress to deal directly with mortgage modification or foreclosures, as an Indiana bankruptcy attorney, I often counsel my clients on these matters, both by helping them negotiate with lenders and through Chapter 13 bankruptcy.  In fact, one of the purposes of this Indiana bankruptcy blog is to help Hoosiers avoid becoming victims of scams.

I want to raise readers' awareness about the fact that free, certified mortgage counseling is available through the Indiana Foreclosure Prevention Network.  Consumers can call 1-877-GET- HOPE.

So, what exactly did National Foreclosure Consultant Services representatives do, and what should you be alert for to avoid becoming a scam victim?  Homeowners in Allen, Hamilton, Johnson, and Marion counties were asked to pay upfront fees ranging from $950 to $3,000 before any services were performed.  Even though NFCS failed to modify any of the mortgages, the company refused to refund those fees.  In their advertising, NFCS made claims of great success rates in the past, which they totally failed to substantiate.  At least one of the homeowners involved was forced into bankruptcy.

The Deceptive Consumer Sales Act was only one of the laws violated by the company.  Our state requires foreclosure consultants to post a $10,000 surety bond, and also requires that consumers be allowed to cancel their contracts within seven days and receive a full refund of fees paid.

I consider it sad that, when times are tough, scammer prey on the most vulnerable citizens. One mission of my work as a board-certified consumer bankruptcy specialist is to offer free, no-obligation consultations to people facing financial challenges.  The goal - helping them sort out their options.