Thursday, September 1, 2011

Virginia AG Cuts Loose Suspected Upfront Fee Loan Modification Racket By Signing Off On $6,500 Civil Suit Settlement

In Virginia Beach, Virginia, The Virginian Pilot reports:

  • A Virginia Beach-based company has agreed to pay more than $6,500 to settle allegations that it charged homeowners facing foreclosure illegal upfront fees to help save their homes, Virginia Attorney General Ken Cuccinelli announced Thursday.

  • Cuccinelli filed a lawsuit in Virginia Beach Circuit Court a little more than a year ago against Real Estate Resolutions LLC. The suit alleged that the company had illegally demanded money upfront for services and, in some cases, never performed. Virginia law prohibits a company that provides foreclosure-prevention services from charging a fee upfront.


  • This is the third settlement the attorney general's office has reached with a mortgage loan-modification company related to illegal upfront fees. Last month, Virginia Beach-based Nationwide Loan Modification Bureau LLC agreed to pay a total of $54,200 to settle similar allegations; and in December, Chesapeake-based American Neighborhood Housing Foundation agreed to pay more than $109,000.

For more, see Va. Beach company agrees to repay homeowners.

For the Virginia Attorney General press release, see Attorney General Cuccinelli announces settlement and permanent injunction against third mortgage loan modification company.

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