I-Team: Foreclosure Prevention Plans

SPRINGFIELD, Mass. (WWLP) - If you're on the verge of losing your home, you may feel like you're running out time and options before the bank takes over your property.

22News I-Team reporter Jaclyn Cashman has information about one scam that many homeowners are falling for.

When the late notices start coming in, homeowners often times become desperate and search for a life line, but it some cases, that move could sink you.

They're called Foreclosure Rescue plans. Companies are still out there offering them, but they are illegal in Massachusetts.

One local resident on the verge of losing her home signed up for the plan, and is now suing the company.
She wouldn't go on camera, but her attorney would. Attorney Robert DiTusa said, "What they say is they will purchase the house from you and then we will rent the house to you for a year or more and at the end of the lease period you can purchase the house back from us and if you can't you can move out at that time."

The money this victim was paying in rent was simply covering the new mortgage this company in question took out.
Attorney DiTusa warns other homeowners not to fall for this scam. There are local non-profit agencies that can help you.

The Western Massachusetts Foreclosure Prevention Center here at hap housing offers free help to homeowners who are in fear of losing their home.

Jennifer Kinsman, the program manager at Western Massachusetts Foreclosure Prevention, said, "Right now we are firmly focused on the new initiative from the federal government with loan modifications or refinancing options through that program."

Jennifer Kinsman says this counseling is confidential. If you are facing foreclosure call HAP housing at 413-233-1622.