Thursday, April 18, 2013

Virginia AG Tags Loan Modification Operator For Allegedly Clipping Homeowners For Upfront Fees For Foreclosure Rescue Services

From the Office of the Virginia Attorney General:

  • Attorney General Ken Cuccinelli announced [] that he has filed a lawsuit against Alexandria resident Joel Steinberg and his two Alexandria-based mortgage loan modification companies, MidAtlantic Loan Solutions, Inc. (MLS), and MidAtlantic Financial Solutions, LLC (MFS), for allegedly charging illegal advance fees of up to $1,500 before performing "foreclosure rescue" services for their customers.

    The attorney general alleges that Steinberg, MLS, and MFS violated the Virginia Foreclosure Rescue law by charging advance fees in connection with services to avoid or prevent foreclosure. The foreclosure rescue law prohibits a supplier of foreclosure avoidance or prevention services from "charging or receiving a fee prior to the full and complete performance of the services it has agreed to perform, if the transaction does not involve the sale or transfer of residential real property."
For the Virginia AG press release, see Attorney General Cuccinelli announces suit against Alexandria-based mortgage modification companies and owner (MidAtlantic Loan Solutions, MidAtlantic Financial Solutions allegedly charged illegal advance fees for "foreclosure rescue" services).

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