Cuccinelli sues mortgage modifiers

By Keith Loria | Jul 22, 2010


RICHMOND, Va. (Legal Newsline) - Virginia Attorney General Ken Cuccinelli filed lawsuits against two mortgage loan modification companies on Tuesday for allegedly violating the state's Foreclosure Rescue law.

Nationwide Loan Modification Bureau LLC and Real Estate Resolutions LLC allegedly promised foreclosure rescue services to consumers, claiming they could help consumers avoid or stop foreclosure on their homes. Before providing any help, however, the companies allegedly collected advance fees of as much as $1,200 and $995, respectively, which is illegal under the Virginia Consumer Protection Act.

The Virginia Consumer Protection Act states that a foreclosure avoidance supplier or one offering prevention services is prohibited from charging or receiving a fee prior to the full and complete performance of the services it has agreed to perform as long as the transaction does not involve the sale or transfer of residential real property.

"During these difficult times, the last thing people need is to be kicked when they are down," Cuccinelli said.

"The advance fees collected should be refunded where services have not been completely performed."

The lawsuit also alleges that, in many instances, Nationwide did little to assist its customers in preventing or avoiding foreclosure.

Cuccinelli's lawsuit asks the court enjoin Nationwide and Real Estate Resolutions from further violating the Virginia Consumer Protection Act and seeks refunds for any customer where that was not provided full services. The suit also seeks civil penalties of up to $2,500 for each violation.

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