US on Pace for 70 Percent Increase in Foreclosure Rescue Scams in 2012

This is a 2008 documentary produced by the Northwest Justice Project about foreclosure rescue scams. Four years later, these schemes remain a real problem, as the Chicago Tribune reported on October 19, 2012, that the Treasury Department's  Financial Crimes Enforcement Network said reports of foreclosure rescue scams rose during the first half of the year. "Nationally, if the reports of suspicious activity continue at their first-half pace, the total for 2012 could be as much as 70 percent greater than in 2011," the Tribune reported.

Debra Olson, executive director of the DuPage Homeownership Center, told the Tribune that she thinks there are "plenty of incidents of scams that are never reported" because people are embarrassed. Olson told the Tribune that she believes that there are people who have been taken advantage of, but do not even know it. Many homeowners throughout the country in need of foreclosure help paid several thousand dollars to someone promising to help them save their homes, realizing too late that they were duped.

"By the time people come to us, more than likely they've been the victim of the fraud," Olson told the Tribune. "The sad thing is by the time they come to us, they’re so much farther in arrearage."

As the Tribune noted, "while authorities might be able to shut down bogus companies and order them to pay fines and restitution, it is often too late for victims." Michael Dickman, an attorney at the Legal Aid Society of Metropolitan Family Services in Chicago, estimates he is working on 150 cases. Dickman told the Tribune, "It's truly like we're standing behind a dike and we have 10 fingers and there’s 100 holes in the dike."

If you are facing foreclosure, do not let a bad problem become worse by falling victim to one of these rescue scams. Filing Chapter 7 or Chapter 13 bankruptcy can be a legal way to stop foreclosure proceedings, end debt collector harassment and reorganize your finances. If you are facing foreclosure, it is in your best interest to contact our firm at (866) 930-7482 or complete the form on this page to let our Chicago bankruptcy lawyers see what Chapter 7 or Chapter 13 bankruptcy could do for you and your family.

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