Kansas AG Files Five Lawuits Against Outfits Allegedly Running Loan Modification & "Foreclosure Redemption Rights" Scams

From the Office of the Kansas Attorney General:

• Attorney General Steve Six is taking legal action to stop those who are preying on Kansans facing foreclosure or other financial difficulties. [Tuesday] Six launched Operation Homestead by filing five lawsuits, extending help to Countrywide customers, and increasing educational resources available to consumers.

• The lawsuits are aimed at businesses the attorney general alleges are defrauding Kansans by running redemption rights(1) and loan modification(2) scams. In several of the cases, the consumers lost their homes and ended up much worse financially than they were before. Six said the lawsuits send a strong message that his office will not tolerate mortgage fraud in Kansas.

For the entire press release, see Operation Homestead: AG Six goes after mortgage fraud and scams targeting Kansans (Six sues five companies, extends assistance to Countrywide customers, increases education on foreclosure).

(1) According to the press release, two of the defendants operate "Redemption Rights Scam," Six said. After a homeowner loses a home to foreclosure, the companies approach the homeowner and buy their rights to redeem the home, lease the house back to the homeowner, and then when the homeowner can't afford to buy the house back, they sell the house for a profit of more than $20,000. The companies Apple Asset, LLC, in Overland Park, and Rush Properties, LLC, in Olathe.

(2) According to the press release, three defendants allegedly operate loan modification scams, Six said. The companies offer to negotiate modifications to the homeowner's mortgage for a sizable fee. However, the extent of the service that the company provides is to mail in documents on behalf of the consumer. The companies are Kirkland Young in Florida, ABS Saveco in Georgia, and Helping Hands Support Services in California.