BBB Alert: "We Buy Houses" Businesses

8/17/2009

Bookmark & Share
  • MySpace
  • Digg
  • Delicious
  • StumbleUpon

Media contact: Janet C. Hart, APR, CFEE - (704) 927-8617 office

On Sunday, August 16, The Charlotte Observer ran a story "Home Scam Stings Owners" about an emerging area of mortgage foreclosure rescue businesses. The “we buy houses” concept is a variation of the mortgage foreclosure rescue business that targets homeowners who are in distress and on the verge of losing their homes to foreclosure. Unfortunately for homeowners, there are some businesses that are taking advantage of them instead of helping them.

One of the individuals featured in the Charlotte Observer story is Robert J. Palano of Get Home Solutions (aka Fast home Solutions). Mr. Palano is originally from New York and has an extensive record of convictions in New York for mortgage fraud as outlined in a news release from the New York Attorney General's office: http://www.oag.state.ny.us/media_center/2006/apr/apr27b_06.html

After serving a prison sentence for mortgage fraud, Mr. Palano relocated to Charlotte in early 2008 to manage the Charlotte office of what was then known as Fast Home Solutions. Shortly after Mr. Palano began operating in Charlotte, Fast Home Solutions began advertising heavily in this market and the BBB began investigating the business because it falls into an area that we flag as “suspect industries.”

When we confirmed that Robert J. Palano of Fast Home Solutions was the same Robert J. Palano from New York, we linked his criminal history to Fast Home Solutions BBB report and revised the company’s BBB rating to an “F”. Soon after, Fast Home Solutions changed its name to Get Home Solutions and has continued to advertise in this market. As soon as the BBB became aware of the business name change, we linked that name change to their BBB report:  http://www.bbb.org/charlotte/business-reviews/foreclosure-rescue/get-home-solutions-in-charlotte-nc-118786.

It is important to make consumers aware of the “we buy houses” businesses. When homeowners are facing a financial crisis like foreclosure, they want to do business with someone they can trust, not possibly become a victim of a mortgage foreclosure rescue business like Dock and Dora Diggs of Monroe did.

In the Spring of 2008, the Diggs entered into an agreement with Fast Home Solutions to buy their home, pay the past due mortgage and fees, remodel it and sell it.  This did not occur and the home was sold at foreclosure on May 1, 2008. After filing a complaint with the BBB, the Diggs reached a very small monetary settlement with Fast Home Solutions and the BBB complaint was closed as resolved.

Unfortunately, the Diggs lost their home and any proceeds from the sale of it.

###


Average Rating | Rate It

z