LEGAL NEWSLINE

SEATTLE (Legal Newsline) - Washington Attorney General Bob Ferguson announced lawsuits on Wednesday against two mortgage rescue firms that allegedly took advantage of homeowners by falsely promising they could delay or prevent foreclosure.

Delay My Sale Date and US Recovery Program allegedly targeted struggling homeowners in Washington state. The lawsuits are part of a joint federal-state sweep by the Federal Trade Commission, the Consumer Financial Protection Bureau and 15 states to crack down on alleged mortgage rescue scams. More than two dozen lawsuits and enforcement actions were filed nationwide as a result of the sweep.

Mortgage rescue scams can wreak havoc on victims' finances and leave them at greater risk of losing their homes.

"As long as mortgage rescue scams threaten Washington homeowners, my office will hold offenders accountable," Ferguson said. "These fraudulent operations not only victimize people who need help, they also harm legitimate businesses that play by the rules. Consumers need to know that foreclosure assistance is available from legitimate service providers."

Delay My Sale Date allegedly misrepresented the legal effects and effectiveness of its services, providing no real help or refunds to its clients. US Recovery Program allegedly posed as a government program, made misrepresentations that banks approved a modified loan and kept payments without providing any relief or assistance.

Ferguson's office obtained temporary restraining orders against Delay My Sale Date and US Recovery Program that prohibit the companies from doing business in the state of Washington.