Matters may be improving after the recent recession, but the after-effects may still be causing financial hardship for some Michigan homeowners. Unfortunately, there may always be those who take advantage of the weaknesses of others. Michigan homeowners deserve to be warned about one such individual who was apparently scamming people facing foreclosure.

Reports from the Attorney General’s office revealed that a man from another state was using the cover of a nonexistent religious organization to defraud homeowners in Michigan. The scam was exposed when the man allegedly offered to assist one of his employees in protecting her from foreclosure. When she realized that she was being scammed, she reported it to authorities.

Reportedly, his modus operandi was to promise homeowners that he would pay their mortgages. For this service, the homeowners had to pay him a fee. However, the alleged scammer did nothing to prevent foreclosure and kept the money paid in fees. Investigators believe that there are more victims than those they know about, but they are aware of over $300,000 that the man has obtained illegally. The man is now facing charges of running an enterprise with criminal intent, along with two additional felonies.

A spokesperson for the Attorney General’s office advised Michigan homeowners to avoid dealings with individuals who offer foreclosure assistance and require fees paid up-front. Those who have been scammed may want to gain information on legal options that are available in an effort to claim financial damages relating to the fees paid. Further, people without stable employment who want to achieve a fresh start may wish to consider the protection of Chapter 7 bankruptcy. In addition to discharging all unsecured debts, it can offer protection against foreclosure.

Source: michiganradio.org, “Man accused of using fake religious organization to run foreclosure rescue scam“, Sarah Cwiek, April 4, 2014