Ohio AG Tags Foreclosure Rescue Operator With Civil Suit Alleging Upfront Fee Ripoffs

In Cleveland, Ohio, WEWS-TV Channel 5 reports:

• An exclusive 5 On Your Side investigation has uncovered rising complaints against an Ohio company offering mortgage relief for struggling homeowners. A review of complaints contained filed with the Ohio Attorney General's Office found at least 71 homeowners alleging they paid thousands for loan modifications that never happened.
• Consumers identified "The Modification Group" or "TMG" as offering to lower their monthly payments through a process called home loan modification.
• Bob Miller and his wife said they gave the company $4,000 to obtain a home loan modification that never happened. The Millers said they signed a contract that they said offered to refund 80 percent of their up-front payment if the loan was not approved. But after waiting 14 months, the Millers said they have no loan and no refund. "And then, the end of April, I come and there's a foreclosure notice on our door," said Paula Miller. "Now what?"
• Lynn Franks is another homeowner who withdrew $2,000 from her retirement account to pay for a loan modification she says she never received. "They told me I would be a perfect candidate," said Franks.
• Three homeowners took "TMG" to small claims court and won. In one case, a judge wrote, "They (TMG) accomplished nothing...nor does it appear they exerted any effort to try to do so."
• Tracie Lee is another homeowner who won her court case as well. In her case, Lee said she spoke on several occassion to Gregory D. Lewis about her loan modification. It turns out that Lewis has a criminal background. A mortgage fraud task force in Cuyahoga County convicted Lewis and six others in 2009 for obtaining $3 million worth of fraudulent loans. He was sentenced to five years probation.

For the story, see Homeowners complain Ohio loan company took thousands in cash (Loans preventing foreclosure never happened).

For the Ohio Attorney General press release, see Attorney General DeWine Files Suit Against Cleveland Foreclosure Rescue Company.

For the Ohio AG lawsuit, see State of Ohio v. The Modification Group, LLC, et ano.