The Idaho Department of Finance has ordered Nevada corporation National Foreclosure Relief Inc. to cease and desist from offering and selling mortgage loan modification services to Idaho residents.
The company apparently targets distressed homeowners seeking to avoid foreclosure on their homes. The Idaho Department of Finance said in a release that the company has never been licensed in Idaho to engage in the offer or sale of mortgage loan modification services, as required by Idaho law.
The Federal Trade Commission sued National Foreclosure Relief Inc. in February, alleging violations of the Federal Trade Commission Act by engaging in misrepresentations of the company’s services to consumers.
The Idaho Department of Finance said it became aware of this company operating in Idaho without a license when it received a complaint from an Idaho couple who paid $1,875 in up-front fees to National Foreclosure for assistance in avoiding foreclosure on their home of 23 years. National Foreclosure also debited from the couple’s bank account three payments of $1,200 each, which the couple understood would be applied primarily toward their monthly mortgage payments. The couple later learned that National Foreclosure had pocketed all of the money it had received from the couple, who ultimately lost their home to foreclosure, the department said.
“It is a sad result when distressed homeowners reach out for help with their mortgage problems and become victimized by unscrupulous mortgage loan modification companies, often losing both their home and the upfront fees they’ve paid to such companies,” Idaho Department of Finance Director Gavin Gee said.
In the cease and desist order, the department ordered National Foreclosure to immediately stop offering mortgage modification services in Idaho without a license, and from other activities in violation of applicable Idaho law.
In a related release, the Idaho Department of Finance suggests that homeowners having difficulty paying their mortgages promptly contact their lenders or loan servicers to explore possible workout arrangements. There are also organizations offering advice and assistance to homeowners for free.
“Many of these unlicensed mortgage modification companies turn out to be scam artists preying on the vulnerability of Idahoans desperate to keep their home,” Gee said. “A good starting point in determining whether a mortgage loan modification company is a legitimate company is to check with the department to see if the company is licensed in Idaho.”
Idaho Department of Finance information on various free foreclosure-prevention resources is available here.
April 29, 2009 at 6:38 pm
My suggestion to people and past clients that call me regarding on what options they have to keep their current home is to check out the website that the federal goverment has put together which is http://www.makinghomeaffordable.gov
Home owners need to become aware of people and companies that offer to modify their loans, if they charge you up-front fees and if they are not licensed credit counselors under the Idaho Department of Finance, step away from them. You can do a loan modification your self. Most professional and ethical Realtors can help you understand the process and be able to offer you free counseling on what numbers to call and what documents you need to provide when you get ready to call your loan servicer.
The key to loan mods is number one, the home owner communicates directly with the loan servicer, your loan has to be own by Fannie Mae or Freddy Mac and the most important, you need to have sufficient income to cover your current expenses. Your income and your expenses need to be balanced.
Most people think that the loan servicer will modify their loan if they can prove that they have lost income or part of their income. You need to keep in mind that the loan servicers want is to make sure that you make enough money to re-pay your new modified loan. If you are un-employed or if you are upside down with your income versus expenses, the chances are that they will not approve the mod.
For people that have lost their income, or had suffered a subtancial loss of income, their option often turns out to be a short sale in order to avoid foreclosure.
Abraham Lopez
Silverhawk Realty
Associate Broker
April 29, 2009 at 4:02 pm
I agree that frauds like the article mentions are scum. But where is the assistance Obama promised when he gave our hard earned taxes to the banking industry? Friends of mine need a loan modification to survive and Country Wide just gives them the run-around day in and day out. They have not defaulted on thier home loan and have a good credit rating. But it is a matter of time, maybe a month or two and then the bank won’t even take their calls. Where are our representative and senators? Why did Obama allow the banks to shore up their assets in China/overseas and not take care of us first. Just call me “Not Happy in Idaho”.
April 29, 2009 at 1:18 am
The most common mortgage modifications are listed below:
lowering the mortgage interest rate
reducing the mortgage principal balance
fixing adjustable interest rates within the mortgage
increasing the loan term throughout the mortgage
forgiveness of payment defaults and fees
or any combination of the above
Check out this public service site: http://mortgagemodificationinfo.org