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Attorney General Cuccinelli sues two Virginia Beach-based mortgage modification companies

RICHMOND, VA (July 20, 2010)Attorney General Ken Cuccinelli filed two separate lawsuits Monday against two Virginia Beach-based mortgage loan modification companies for allegedly charging illegal advance fees of up to $1,200 before performing “foreclosure rescue” services for their customers.

Nationwide Loan Modification Bureau, LLC (Nationwide) and Real Estate Resolutions, LLC (Real Estate Resolutions) offered services to consumers purportedly to help them avoid or prevent foreclosure.

The attorney general alleges that the companies violated the Virginia Foreclosure Rescue law by charging advance fees prohibited by § 59.1-200.1 of the Virginia Consumer Protection Act.   Nationwide and Real Estate Resolutions allegedly charged consumers fees up to $1,200 and $995, respectively, before performing any services for or on behalf of their customers.   The Foreclosure Rescue law prohibits a supplier of foreclosure avoidance or prevention services to 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.”

Cuccinelli also alleges that in some instances, Nationwide violated the Virginia Consumer Protection Act by doing little or nothing to assist its customers in preventing or avoiding foreclosure.   The Virginia Consumer Protection Act generally prohibits suppliers from engaging in deception, false statements, false promises, or misrepresentations in connection with consumer transactions.

“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. I am pleased that my office has been able to address the alleged wrongdoing and I hope these cases will send a strong message that we intend to enforce our foreclosure rescue law.”

The Office of the Attorney General has met periodically and worked with the Virginia Office of Consumer Affairs and the Virginia Bureau of Financial Institutions over the last several months to identify and investigate companies thought to be violating the advance fee prohibition on foreclosure rescue companies.

The two lawsuits were filed in Virginia Beach Circuit Court.  They request that the court enjoin Nationwide and Real Estate Resolutions from violating the Virginia Consumer Protection Act and that any money be returned to consumers where services were not performed completely. The suit also seeks civil penalties of up to $2,500 for each violation of the act.

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog.

Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

One Response to “Attorney General Cuccinelli sues two Virginia Beach-based mortgage modification companies”

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    Tom White Says:

    Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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