Houston Firm Sued for Repossessed Home Rescue Fraud

Two more victims of Excel Loss Mitigation’s fraudulent repossessed home rescue service came out and accused the company of defrauding them of their hard earned money. The office of the Texas attorney general has filed a lawsuit against Excel on behalf of the couple.

Deceptive practices were filed against Excel and United Servicing LLC, a company that was created after complaints were made against Excel.

The Better Business Bureau (BBB) said that about 19 customers of Excel came forward and filed a complaint against the company and its repossessed home rescue scheme. According to court documents, customers were made to pay for worthless foreclosure rescue, credit repair and debt counseling services.

The couple who filed a complaint against Excel said that they experienced financial difficulties after purchasing a property in Fort Worth in 2007. Back then, the house was valued at $280,000.

Early this year, the couple was approached by an Excel telemarketer who offered them the company’s services to help them renegotiate their distressed loan. They were asked to pay a $1,500 fee. And that was the last time that the couple heard anything from Excel despite numerous e-mails and follow-up phone calls to the company.

According to the lawsuit, Excel made its customers believed that it has a team of professional mediators and legal experts that can help distressed homeowners persuade mortgage lenders to work out loan terms and thus, avoid repossessed home sale.

However, the lawsuit noted that the company has no legitimate resources, business model or plan to perform any service that could help distressed homeowners avoid foreclosure.

BBB noted that repossessed home rescue fraud, similar to the one committed by Excel, is becoming a trend in the real estate industry. It cited the case of United Financial Solutions which received a failing grade from the BBB after four complaints of mortgage fraud had been made against it.

United Financial is one of the six companies sued by the U.S. Federal Trade Commission (FTC) in 2008 for deceptive practices. Fort Worth BBB President John Riggins explained that FTC took over the case of United Financial because the crime happened in several states. He added that there are numerous types of mortgage fraud which made tracking them difficult for local and state officials.

Distressed homeowners are advised to contact their mortgage lenders to avoid repossessed home rescue fraud.

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