Homeowners Warned About Mortgage Ploy

Allison Tussey —  January 11, 2013 — Leave a comment

Homeowners should be on the lookout for a mailing that appears to be a legal document, but may be a ploy against mortgage consumers. 

The mailing comes in an envelope that appears to be an official legal or government document, but there is no company name or return address on the envelope or the letter itself. A call to the toll-free number in the letter reveals the company as Fresh Start, based in New York.

The letter informs homeowners that they may be eligible to join a national lawsuit or make a potential legal claim against a mortgage lender. The pitch from Fresh Start is that the homeowner must first pay $2,700 for the company to do “research” and then another $2,500 to retain a lawyer. Such up-front fees are a violation of federal regulations and Arizona consumer fraud laws.

Arizona Attorney General Tom Horne issued the warning.

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Allison Tussey

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