Connecticut AG Probes Loan Modification Firm Allegedly Masquerading As Reputable Non-Profit Clipping Homeowners For Upfront Fees For Bogus Help

From the Office of Connecticut Attorney General Richard Blumenthal:

• Attorney General Richard Blumenthal and U.S. Rep Joe Courtney [Thursday] announced an investigation -- and issued an urgent warning to homeowners -- about so-called mortgage rescue deals that may actually cost consumers their homes. [...] Blumenthal is investigating H.O.P.E. Alliance (HOPE Alliance), Inc. after Courtney alerted his office about the company's alleged false promises to rescue homeowners from foreclosure.

• Blumenthal said, "I am alarmed by allegations that HOPE Alliance is masquerading as a reputable non-profit and erasing all hope for homeowners. I thank Congressman Courtney for alerting my office and aiding victims. We are investigating HOPE Alliance because it allegedly took consumer money, convinced homeowners to stop mortgage payments and then left them with nothing."

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• HOPE Alliance's name mimics that of HOPE NOW, a non-profit alliance of counselors, mortgage companies, investors and others that offers outreach to distressed homeowners free of charge.

For more, see Blumenthal, Courtney Warn About Harmful Mortgage Rescue Deals Hitting Connecticut.

For the story of the two women who were clipped for a total of $3,000 that precipitated the Connecticu AG's announcement, see WFSB-TV Channel 3: Women: We Fell For Foreclosure Scam (Hope Alliance Masquerading As Conn. Nonprofit, AG Says).