PLEASANTON (CBS 5) -- A Pleasanton company said it is sending letters of apology to thousands of homeowners who were mistakenly informed that their properties were in default.

James Young of San Francisco received one of the letters earlier this month. The letter stated, "A Notice of Default (NOD) was filed against your property initiating the foreclosure process."

Young, who said he never missed a mortgage payment, was shocked. "You could open up a letter like that and have a heart attack," he said.

Young called the phone number at the bottom of the letter and got another surprise. The person who answered asked Young if he had missed a mortgage payment. When Young said no, he was told the letter was sent out by mistake.

CBS 5 ConsumerWatch went to 39 California Avenue in Pleasanton, the return address on Young's letter. At the address was Provident Associates, a company that said it helps homeowners get loan modifications.

A man who identified himself as Corey Hill told CBS 5 ConsumerWatch that he had mistakenly sent the letters to about 2,000 homeowners. "I made a huge mistake," Hill said. "I sent a letter that was a working draft that hadn't been completed. Not only was the letter poorly crafted and not finalized, it went out to consumers whose homes were in default."

Hill told CBS 5 he purchased the "wrong list" of homeowner addresses and that he has been grieving and distracted because of a death in his family. He also said that is why the company's name was not printed anywhere on the letters.

Tom Poole of the California Department of Real Estate finds the letters troubling, but says if they were sent by mistake, the company would probably not face any penalty. Poole said Notices of Default, which are the first step in the foreclosure process, are public records.

San Mateo County Deputy District Attorney John Wilson urges homeowners who are having trouble paying their mortgages to view solicitations of foreclosure rescue with caution. Wilson advises they contact a HUD approved non-profit housing counseling agency, such as the Consumer Credit Counseling Service or Project Sentinel.

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