Oregon Cracking Down on Sketchy Loan Modification Companies
If you’re a shifty loan modification company (and there are a few), look out. Today the Oregon Department of Justice announced a new enforcement effort to protect Oregon homeowners by targeting loan modification companies that engage in “deceptive and misleading business practices.”
More than half a dozen investigations related to loan modification companies and mortgage fraud have been opened by Attorney General John Kroger’s Financial Fraud and Consumer Protection Unit.
According to the article posted by the Portland Business Journal,
“The settlements are with National Homeowners Assistance Services Inc., based in Lake Forest, Calif., and American Mitigation Group, based in Newport Beach, Calif. The companies offered loan modification assistance and related services to homeowners facing foreclosure. The companies purposefully used tactics that could confuse homeowners, including implying they were affiliated with government agencies or programs, Kroger said.
American Mitigation Group has paid $1,000 in restitution to an Oregon consumer and must pay an additional $3,000 to the Oregon Department of Justice for further restitution and to cover its costs. The company is no longer doing business in the state. National Homeowners Assistance Services must pay $4,000 to cover legal costs and must change its practices in order to continue to do business in Oregon.”
This is good news. Stressed homeowners will often look to fraudulent loan modification companies as a quick fix to their situation, when that is rarely the case. If you are looking for a way out, contact your current loan servicer or visit the government’s website on the topic.
Of course, feel free to contact me with any questions you might have.
