National Foreclosure Management, Inc.

The Attorney General filed a lawsuit against South Florida-based National Foreclosure Management and multiple affiliates over allegations they defrauded at least 80 homeowners out of approximately $1.7 million in home equity.

Beginning in October 2004, National Foreclosure Management – which now does business as American Home Rescue, Inc. – selected homeowners who had substantial equity in their homes but were in the process of being foreclosed upon. The company would offer to hold the titles to the homes for a year, refinance the debt, and provide cash and credit repair counseling to the homeowner, all while allowing the homeowner to remain in the house. The company claimed it would deed the property back at the end of the year after the foreclosure had been avoided and the homeowner’s credit was repaired.

Once the company had obtained the title to the house, the Attorney General’s lawsuit alleges the company would strip the equity from the homes by refinancing them at inflated prices and by assessing fraudulent fees and costs, leaving little or nothing for the homeowner to recoup. The home would then be sold outright to an investor or a straw buyer who would lease the home back to the homeowner at a rental rate far exceeding the original mortgage payment, virtually ensuring the homeowner’s eventual eviction. According to the lawsuit, the homeowners would end up with neither the titles to the homes nor the equity that rightfully belonged to them.

A copy of the lawsuit against National Foreclosure Management is available online at:
http://myfloridalegal.com/webfiles.nsf/WF/MRAY-7B4NC7/$file/NationalForeclosureManagementComplaint.pdf