Loan Modification Scams Shut Down by AG Brown
Attorney General Brown has shut down the following loan modification and
March 2009- Foreclosure Freedom, a fraudulent loan modification company that continued to collect fees and mortgage payments from dozens of homeowners without ever providing any loan modification services.
November 2008- First Gov after the company demanded an up-front fee, ranging
from $1,500 to $5,000, to participate in a loan-modification program and
never renegotiated the loans.
October 2008- $8.68 billion settlement with Countrywide Home Loans after the company deceived borrowers by misrepresenting loan terms, loan payment increases, and borrowers’ ability to afford loans.
March 2008- Lifetime Financial, Nations Mortgage, Greenleaf Lending, Virtual Escrow, Olympic Escrow and Direct Credit Solutions after the companies ran a complex predatory lending scheme using bait and switch tactics to victimize thousands of homeowners, many of whom lost their homes.