Ohio AG Cordray Sues Three Foreclosure Rescue Businesses

Posted by Orb Staff on September 17, 2010 No Comments
Categories : Mortgage Servicing

Ohio Attorney General Richard Cordray has filed three new lawsuits against foreclosure rescue operations. In the lawsuits, Cordray is seeking to shut down these outfits in Ohio with full restitution to homeowners.

‘In each case, the rescue operations charged ridiculously high fees to assist homeowners who were at risk of losing their homes,’ Corday says. ‘In the end, homeowners got no help and ended up in deeper mortgage trouble.’

In Franklin County Common Pleas Court, Cordray has filed suits against National Homeownership Assistance Foundation Ltd., located in Worthington, and Stephens Investment & Financial Services (doing business as Lifeline Financial Legal Home Solutions), located in Fort Lauderdale, Fla.

In the case against Lifeline, Cordray accuses the operation of claiming that it could "reduce your payments up to 10 percent to 50 percent," or "lower your interest rate." After charging thousands of dollars, the company failed to deliver the service, Cordray says. Lifeline also misled consumers by misrepresenting its legal expertise and the availability of legal services, including "retained legal experts."

Additionally, Cordray has filed a suit in Stark County Common Pleas Court against 1st American Law Center Inc., based in Oceanside, Calif. In the filing, 1st American is accused of charging homeowners as much as $4,000 for foreclosure prevention assistance services, such as negotiating loans and accepting payment for these services without delivering on its promises.

SOURCE: Office of Ohio Attorney General Richard Cordray

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