Foreclosure Remediation Schemes Can Lead to Bankruptcy

foreclosure fraud, bankruptcyIf you or someone you know is facing bankruptcy, you just might want to listen up. As more Florida homeowners continue to face the possibility of bankruptcy, some very shady schemes have been showing up that promise to save your home from the bank. They range in how they will do it, but the bottom line is this: they do not work. They will take your money, often convince you to go ahead and let your home be repossessed because they can get it back for you, and then disappear into the woodwork.

Thousands of Florida homeowners are now not only facing bankruptcy, but have lost their homes with no hopes of regaining them as a result of these foreclosure remediation schemes. Andrew Bartock was just one of these many companies that offered these schemes, and he is finally about to be put in prison. He faces as much as 95 years in prison for ruining many people’s lives, but he is not the only one. Here is how his scheme worked.

Revelations and the Foreclosure Club of America

Bartock had a company that did business under the name The Foreclosure Club of America. He was pretty high profile and he promised relief for many Florida homeowners who were under the gun to the banks for getting behind on their mortgages. Many of these homeowners had homes that were “underwater” or worth less currently than their outstanding loan.

The promise was simple. In exchange for monthly fees paid to The Foreclosure Club of America the homeowners could stay in their homes, even if the banks foreclosed on them. The homes would then go into foreclosure auctions and the homeowners, through the club, would be able to buy their homes back at the auction prices. Sounds like a good plan, right? Wrong!

Playing the Waiting Game

In reality, not a single home that went through this process was ever bought back. Not one. The Foreclosure Club, and hence Bartock, continued to collect monthly fees but never made any attempt to buy back any of the homes. Millions of dollars a month went into the company to support a lavish lifestyle. Nothing went towards the supposed purpose of the company, outside of promoting the idea.

This scheme was perpetrated on homeowners in New Jersey, New York, Connecticut, Pennsylvania, Georgia and Florida without anyone the wiser for a long time, eleven years. The law has finally caught up with this one scheme when he was caught filing fraudulent bankruptcy petitions as part of the company’s scheme to keep homeowners at bay. He is now awaiting sentencing.

Too Good To Be True

If you are struggling to make your mortgage payments or are facing other situations that may lead to bankruptcy, be wary of offers that are too good to be true. If you want to check out something that might be helpful, have a good lawyer look into it for you. Never sign anything without checking it out first. Many Florida homeowners are facing bankruptcy because they signed on to a scheme to save their homes from foreclosure without finding out first if the plan was even viable.

Learn the Truth About Bankruptcy

Find out all your options if you are struggling financially. At RestartYourLife we want you to succeed. To help you we have written several free eBooks that gives you the basics on foreclosure and bankruptcy. Use these links to download this valuable information and find out what your options are.

Need to find out more? Call us today for your free consultation. Get your life back on track, legally and safely, with a legal team that has specialized in helping Florida homeowners for over 15 years and we can help you.