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Foreclosure Aid Company Claims Bankruptcy

Homeowners: Company Took Money, Gave No Help

POSTED: 10:44 am PST March 3, 2009
UPDATED: 11:02 am PST March 3, 2009

A company that offered to help homeowners avoid foreclosure – for a fee – has left customers locked out, without answers and without their money.

The company called U.S. Justice Foundation claimed to be able help people avoid foreclosure by modifying mortgages to a lower payment. The company even made its pitch as a paid advertiser on this station.

But on Monday morning, customers who had shelled out thousands of dollars were met with a problem they didn't see coming: a locked door at the company and no answers at U.S. Justice Foundation.

A notice, posted on the window, said the company is in the process of filing for re-organization under Chapter 11 bankruptcy.

The notice blamed the customers. It read: "Unfortunately this has become necessary due to a lack of funding as our clients have failed to honor their commitments and the foundation simply ran out of funding."

Customer Alfred Bengson wanted answers.

"What can we do? We need help, you know?" he said.

By the end of the day, the wheels of the legal process had started turning.

Patrick Llewellyn served papers on behalf of an attorney who represents eight clients of the U.S. Justice Foundation.

"They came to us after they came to the U.S. Justice Foundation, and through a little bit of research we found there are practices that shouldn't be going on, so we're pursuing it through the legal system," Llewellyn said.

Jack Firm operates U.S. Justice Foundation. He was nowhere to be found Monday.

The station called the company and was told someone would return the call. No one did.

The station knocked on the door. Even though people were seen inside, no one answered.

Customers paid up front, some as much as $3,000 to have U.S. Justice Foundation sue their mortgage lenders for a new loan in the hopes of saving their home.

"I can't sleep at night because I'm so worried," homeowner Lucy Rioja said.

Rioja paid $2,981 and heeded the advice of the company.

Since then, she has received a default notice and is worried she may be out more than money. She soon could be out on the street.

"Where are we going to sleep?" she asked. "The Strip?"

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