AG's offices warn against mortgage ploy

GRAND RAPIDS, Mich. (WOOD) - Homeowners in jeopardy of foreclosure on Grand Rapids' southeast side got a letter last week from a company promising to help.

Turns out, the Jacksonville, Florida-based company has been getting a bad reputation in other states.

The letter is being sent to residents in a southeast side neighborhood, and the company, AFCC out of Jacksonville, Florida promises a variety of services to help the homeowner avoid foreclosure.

A 24 Hour News 8 viewer, desperate to save his home called the company as instructed on the letter. After a lengthy conversation the AFCC agent said they could help him avoid foreclosure. All he had to do is send them money -- up front -- $1,100, in fact.

They even told him he could split it up into two easy payments. Our viewer became skeptical and never sent the money.

We traced the company, AFCC back to the Florida address.

It turns out they really go by another name entitled "National Foreclosure Counseling Services."

And when we questioned the phone manager there about the large up front fees they were asking for, he gave us the company president, Bob Dallavia's voice mail. That call was never returned.

It turns out, the company "National Foreclosure Counseling Services" has earned quite the reputation with attorneys general around the country.

The Florida AG's office says they have 14 complaint reports against the company and are conducting an investigation.

AG's offices in Minnesota and Illinois have filed suit against NFCS as "up front" fees for foreclosure assistance is illegal in their states.

We contacted the Michigan AG's office as well, and while they tell us they don't regulate companies like this they say it doesn't mean it's not a scam.

The AG's office tells homeowners to contact their lender directly to negotiate reduced payments.

Beware of companies asking for upfront payments for services.

And if you need foreclosure assistance -- make sure you're dealing with a HUD approved company

The Michigan Attorney General's office has several resources you can take advantage of if you're in need of assistance.

You can click the "avoid foreclosure" button on their website.