Tuesday, October 11, 2011

Oregon AG Targets Outfit With Civil Suit In Alleged Upfront Fee Loan Modification Ripoffs That Pocketed About $90K From 30+ Homeowners

In Salem, Oregon, KTVZ reports:

  • Attorney General John Kroger announced a lawsuit Friday accusing California-based loan modification company NOD Consultants, LLC of illegally collecting about $90,000 in fees from nearly three dozen Oregon homeowners and then refusing to provide refunds after the company failed to obtain promised loan modifications. It was one of two actions he announced Friday involving loan modification scams.


  • The lawsuit was filed Sept. 29 in Clackamas County Circuit Court against NOD Consultants and the company’s two principals, Nicolas R. Godbout and Grant A. Gerhart. [...] According to the complaint, although most of the defendants' Oregon clients were current on their mortgage payments, the defendants encouraged them to skip at least one payment, claiming it would encourage their lender to re-negotiate.

  • Notwithstanding promises to obtain loan modifications, NOD Consultants allegedly failed to obtain a loan modification for 33 of its 34 Oregon clients. The complaint states that, despite the defendants' repeated failure to obtain loan modifications, they have generally refused to refund the fees paid by their clients.


  • Earlier Friday, Kroger announced an agreement that will provide restitution for more than two dozen Oregon homeowners who were promised loan modifications that were never delivered.

  • The agreement bans American Team Mortgage, Inc., dba American Mortgage Relief, and Steve Hufstedler from foreclosure counseling, credit/debt counseling, loan modification or mortgage origination in Oregon. Under the agreement, 28 homeowners will receive $67,000 in restitution. Oregon will receive an additional $65,000 for its consumer protection efforts.

  • The Department of Justice and the Department of Consumer and Business Services conducted a joint investigation into allegations that the companies took illegal upfront fees to provide loan modifications. The investigation determined that 28 Oregon homeowners received neither the loan modification they paid for nor a refund.

For the story, see Oregon AG Targets Loan Modification Scams (Sues One Firm, Shuts Another Down).

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