Mass Joinder Lawsuits — A recent twist on foreclosure rescue schemes involves mass joinder lawsuits — the joining of two or more legal issues that are sufficiently similar to be heard in one hearing. As part of this scam, distressed homeowners are solicited by a “specialized” law firm inviting them to participate in a mass joinder lawsuit as a way to obtain a loan modification or avoid foreclosure.

The law firms charge fees between several thousand dollars to over $10,000 and claim that they will join the case with other homeowners in similar circumstances to file suit against their mortgage lender.

Many of these scammers claim they can stop foreclosures, reduce loan balances or interest rates and even remove the debt from the home so that the homeowner is free and clear of their existing mortgage. In most cases, there is no attorney reviewing the homeowner’s case or the attorney of record is not licensed to practice in the state where the homeowner resides. Homeowners are often left in worse financial shape than when they started, with some losing their homes in foreclosure.