WJW Enterprises is an Ohio company that promises to help homeowners stave off mortgage foreclosure.

Team 4 investigative reporter Jim Parsons says that in return for its fee, WJW is providing little but false hope.

The Better Business Bureau in Cleveland has revoked this company's membership. A federal judge in Akron says the company is illegally practicing law. But no one has warned unsuspecting consumers in western Pennsylvania, until now.

The following Team 4 report by Jim Parsons first aired Feb. 26, 2004, on Channel 4 Action News at 5 p.m.

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Jim Warsing, WJW President: "I'm getting tired of people making accusations. We do help thousands and thousands of people every day."

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Watch Parsons' Report

He claims his company helps debt-ridden consumers keep their homes, but some of his customers tell a different story.

Bette Goldberg: "I just feel like they don't want us to keep this house. They just keep dragging it out and dragging it out."

It was last fall that Bette and Jim Goldberg were served with a foreclosure notice. They had fallen behind on their mortgage payments and their lender threatened to take away their Greensburg house.

Bette Goldberg: "I didn't want to lose my house."

The Goldbergs received a brochure in the mail offering hope and promising to save their home from foreclosure.

Jim Goldberg: "We just jumped at the first guy who came along. Obviously, it was a mistake."

The Goldbergs were dealing with a company that operates out of a previously vacant old bank building in downtown Ashtabula, Ohio. The company's reputation in these parts is, at the very least, controversial.

The Better Business Bureau of Greater Cleveland's Web site lists WJW Enterprises under a warning headline entitled "foreclosure scam." The BBB revoked WJW's membership last August, giving the company "an unsatisfactory rating due to unresolved complaints ... and a pattern of serious complaints."

Helpful Links Consumer Credit Counseling Service of Western Pennsylvania Better Business Bureau of Greater Cleveland U.S. Trustee Program

Jim Goldberg: "We looked at this as somebody who wants to help us. Well, they didn't want to help us. They did nothing for us except take our money."

The Goldbergs paid WJW a $900 fee, plus another $3,500 to negotiate with their mortgage lender.

Bette Goldberg: "That was their fee to handle this for us, which I understood."

Parsons: "And what, exactly, have they handled for you?"

Bette Goldberg: "Nothing. They haven't done anything for us."

The Goldbergs finally called their mortgage lender, stopped the foreclosure and worked out a payment agreement on their own. Then, they called Warsing.

Bette Goldberg: "I just said I wasn't going to let them deal with my foreclosure any more. I was taking it from there. I wanted my money back and I didn't want anything more to do with them."

Parsons: "And how did he react to that?"

Bette Goldberg: "How did he react? He hung up on me."

That was two months ago. Warsing still has the Goldbergs' money.

Parsons: "Where is their $4,000?"

Warsing: "It's in an escrow account, and they can have it back."

Parsons: "Why don't you send them a check now?"

Warsing: "I can send them a check now."

He still hasn't done it, and the Goldbergs claim he has stopped returning their phone calls.

Warsing: "Oh, no. We call them any time that they call."

Parsons: "They say that's not true."

Warsing: "That's one side of the story."

Parsons: "And another side of the story is the Better Business Bureau of Greater Cleveland. They revoked your membership."

Warsing: "You're damn right they did, excuse my French. I have no respect for the BBB."

It's not just the Bureau that's warning consumers about WJW Enterprises.

This month, a federal bankruptcy judge in Akron issued a permanent injunction against WJW, barring the company from "soliciting individuals whose properties are in foreclosure" in northern Ohio. Judge Marilyn Shea-Stonum also requested that "the U.S. Trustee investigate the illegal practice of law by WJW."

All of that came about because of what WJW did to Lynn Jones.

Jones: "I sent them $5,000 that I sold my car for."

Lynn, who suffers from multiple sclerosis, hired WJW after her mortgage lender threatened to foreclose on her house. WJW told Lynn and her daughter to cut off all communication with the lender and leave the negotiations to them.

Jones: "I got them on the phone. They said they could handle the whole thing and there would be no foreclosure and don't worry about it."

It didn't work out that way.

Shea-Stonum wrote earlier this month that "there was no evidence that WJW did anything for (Lynn Jones) but refer her to its attorneys who counseled Lynn to file for bankruptcy."

Jones: "I felt scammed."

Parsons: "Could it ever be a good idea to hire a company like this?"

Mary Loftus, Consumer Credit Counseling Service of Western Pennsylvania: "In my opinion, no."

CCCS is a nonprofit agency that helps consumers get out of mortgage foreclosure for free.

Loftus: "I would suggest that they talk to their mortgage company immediately. Mortgage companies are not in the business of selling homes. They want to help that homeowner keep that home if they possibly can."

Good advice. Keep it in mind if this guy sends you a brochure.

Parsons: "Do you plan on doing more business in the Pittsburgh area?"

Warsing: "Absolutely."

Parsons: "So you're going to keep advertising?"

Warsing: "Absolutely."

Last year, Allegheny County set a record for foreclosures with more than 4,000.

If you find yourself in trouble with your mortgage lender, there are steps to avoid foreclosure. Try the links in the box at the above right.