Complaint Review: Hope Now Financial Services - Cherry Hill New Jersey

Also - there is information on the Federal Trade Commission Website on how to SPOT AND AVOID THIS SCAM. NJ has already filed charges against this Mortgage Rescue SCAM from another website called consumeraffairs New Hope is mentioned further into the article. New Jersey Cracking Down On Mortgage Fraud Three lawsuits filed on accusations of deceptive lending practices March 16, 2009 "The lawsuits we announce today involve three separate complaints, but they share a common thread of greed, human callousness and disregard for the law," Milgram said. "In one way or another, each of the defendants in these complaints is charged with making money by selling false hope to trusting people during uncertain economic times." One of the state's three complaints charges a disbarred lawyer, Martin Gendel of Montville, and his son, Seth Gendel of New York City, as well as their companies Casey Properties and Lee Alan LLP, with violating New Jersey's Civil Racketeer Influenced and Corrupt Organizations (RICO) statute. The suit charges the Gendels, along with six other defendants, with using deception and the credit information of their unwitting victims to obtain fraudulent mortgage loans and turn a profit via the sale of urban properties at grossly inflated prices. Casey Properties basically duped its victims into buying homes in Newark, Paterson, Irvington and East Orange that were the subject of bogus appraisals, then profited by taking fees out at closing from the inflated equity. The defendants told investors Casey Properties would take care of all aspects of the sale, as well as property management including finding tenants, collecting rents, paying the mortgages and making needed repairs. However, Casey never did maintain the homes or keep up the mortgage payments, the complaint says. In the end, victims had their credit ruined and were left responsible for dilapidated homes that had been foreclosed on and abandoned. At the same time, the municipalities were left to deal with dozens of nuisance properties. Milgram says in some cases, tenants were left to live in squalor, without utilities, as conditions deteriorated and properties fell into foreclosure. Some renters ended up homeless when their houses were declared uninhabitable. Altogether, Casey Properties is accused of persuading at least 32 investors to buy 63 properties that sold for a total of $18 million. In the other two lawsuits, two unrelated companies in South Jersey Hope Now Financial Services Corp. of Cherry Hill and New Hope Modifications of Bellmawr are charged with selling loan modification services that never materialized, and with creating the false impression they were affiliated with a non-profit foreclosure prevention organization known as the Hope Now Alliance. Among other services, the Hope Now Alliance offers free credit counseling with federally-approved counselors. As part of the actions, Milgram said, the state has asked the court to shut down a Web site operated by Hope Now Financial. Since at least November 2008, Hope Now Financial has advertised loan modification services through a Web site at www.hopenowmod.com. By posting a video, news articles and links to federal government press releases, the profit-seeking Hope Now Financial has falsely suggested an affiliation with the non-profit Hope Now Alliance, Milgram said. In fact, Milgram noted, there is no connection. Moreover, Hope Now Financial is accused in the state's lawsuit with charging significant fees for loan modification services that were never delivered. To date, 23 consumers living in New Jersey and out of state have filed complaints against Hope Now Financial with either the Division of Consumer Affairs or the Better Business Bureau. The total amount of money paid by those victims to Hope Now Financial exceeds $29,000. The third lawsuit charges the Bellmawr-based New Hope Modifications with similar fraud for representing themselves as having an affiliation with the Hope Now Alliance, and for also selling loan modification services that were never provided. To date, the state has identified 80 victims of New Hope, and the total amount of money collected from those victims exceeds $98,000. Like Hope Now Financial, New Hope Modifications is accused of victimizing New Jersey consumers and those living out of state. "This kind of predatory activity is reprehensible, especially in this economic climate, and will not be tolerated," said Department of Banking and Insurance Commissioner Steven M. Goldman. "Struggling homeowners were led to believe these companies would help them, but instead the homeowners were exploited. Any individual or financial services organization that attempts to defraud consumers will be subjected to the maximum penalty the law allows." Among other things, each of the state's three complaints asks the court to order a halt to the defendants' business practices. The lawsuits also seek consumer restitution, imposition of the maximum civil penalties and a freezing of the defendants' assets. The information is out there to help you protect yourself. In this day and age, you have to protect yourself and that means checking things out first! TOO MANY PEOPLE ARE TRYING TO RIP US OFF. With the bad economy - the SCAMMERS and number of SCAMS are increasing daily! Also another way to avoid being scammed is just plain old common sense ADVERTISEMENTS from the Federal Trade Commission website: The appearance of ads in media outlets that you recognize - like your local newspaper or radio station - is no guarantee of the legitimacy of the company behind the ad.