Unfair practices by mortgage companies

Unfair practices by mortgage companies

Homeowners trying to modify their home loans in an effort to save their homes from foreclosure are often being met with unfair practices by companies. Missouri Attorney General Chris Koster is not standing for these misleading practices. In fact, he filed three separate lawsuits against individuals and their companies for misleading consumers in connection with mortgage modification services. The lawsuits are a way the AG and his office continue to help Missouri homeowners as they try to work their way out of hard times.

The lawsuits allege that the companies engaged in multiple deceptive or unfair practices. These practices include requiring and receiving advance payment for loan modification services; failing to provide the promised loan modification services that were to be provide to consumers by the consumers in exchange for the advance fees; failing to refund any consumers for loan modification serves that consumers paid for but where loan modification services were not in fact received; persuading consumers to stop making mortgage payments to their lenders by promising successful loan modifications regardless of whether such loan modifications were completed; failure to place legally required notifications of the homeowners’ rights in the contracts between the defendants and the homeowners; and engaging in the unauthorized practice of law in Missouri.

The above mentioned lawsuits are an effort by the Attorney General’s Office to protect Missouri consumers from businesses that operate to take advantage of consumers by advertising and offering illegal mortgage-modification services. In a continued effort to help Missouri consumers, Koster’s office is also working with consumers where consumers are eligible for and qualify for mortgage modifications. Through these programs, over 1,300 Missouri consumers and borrowers have received $45 million in relief including principal reductions, short sales, refinancing and other borrower assistance programs. These programs are for individuals whose homes are worth significantly less than what is owed on the borrowers mortgages. An additional $28 million in relief is in the process of being provided to such Missouri borrowers that are underwater on their homes.

If you are going through a loan modification and either are not successful or they mortgage company proceeds with the foreclosure process prior to granting a loan modification you are not alone. We can help you. While we cannot guarantee a loan modification, we can stop a foreclosure and put the back payments into a repayment plan over up to 48 months. Contact us today!