What I find interesting is that it seems many debt relief companies that were originally selling solutions to consumers to “avoid bankruptcy” and who stated bankruptcy should be avoided at all costs or only a last resort, turn to bankruptcy when the company gets into trouble. Hum.
News10ABC in California is reporting:
A foreclosure rescue company described as a “scam” in a lawsuit filed by the state attorney general has filed for bankruptcy protection.
US Loan Auditors filed for Chapter 7 liquidation and its sister company, My US Legal Services, filed for Chapter 11 reorganization in US Bankruptcy Court in Sacramento last Thursday.
Most money news tells you what happened. I tell you what to do about it.Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
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Both companies and their principals have been named in a $60 million lawsuit filed by the attorney general’s office Oct. 6. The lawsuit claims US Loan Auditors was a foreclosure rescue scam that snared hundreds of California homeowners.
US Loan Auditors allegedly promised troubled homeowners it could save them from foreclosure by conducting a “forensic audit” to challenge the loan documents.
According to the lawsuit, the sister company, My US Legal Services, would then file “cookie cutter” lawsuits against lenders that were generally dismissed by the courts.
The lawsuit claims one homeowner was charged $56,000 for services that produced little or no relief.
One of the principals, attorney James Sandison, has also filed for personal bankruptcy protection. – Source
In the case of the homeowners who were having mortgage problems and whose lenders would not work with them, a conversation with a local bankruptcy attorney would have been far more productive and more fruitful then falling for yet another mortgage rescue scam.
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What I’ve seen over and over again is that most people just don’t know better – when it comes to avoiding scams. I just can’t believe that one homeowner shelled out $56,000 for services. $1,000? Maybe. But $56k is no small chicken.
And you are correct, Steve: The debt relief companies always tell people “bankruptcy is baaaaad”, but look what they did.
What I’ve seen over and over again is that most people just don’t know better – when it comes to avoiding scams. I just can’t believe that one homeowner shelled out $56,000 for services. $1,000? Maybe. But $56k is no small chicken.
And you are correct, Steve: The debt relief companies always tell people “bankruptcy is baaaaad”, but look what they did.