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Complaints Rise As Home and Lists of Farm Foreclosures for Sale Jump

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By : John Cutts    99 or more times read
As the number of foreclosed residential properties increases and the lists of farm foreclosures for sale grow, the level of fraudulent activities involving so-called debt relief businesses also rises in Ohio. According to the Attorney General's Office, the number of complaints against these firms has jumped by almost 200% since the start of the recession.

The AG Office also revealed that aside from debt relief businesses, companies offering rescue services to owners of properties under Columbus foreclosure listings and other foreclosed property listings in various areas of the state have also been cited in residents' complaints. The increase in foreclosure rescue service-related complaints is estimated to be at 250% since the start of the housing industry crisis.

Recent reports showed that state Attorney General Richard Cordray has filed a lawsuit against one of the firms that allegedly offers assistance to owners of home foreclosures in Ohio in setting up fake mortgage loan modification. According to Cordray's office, the firm has taken over $60,000 from homeowners in the state seeking mortgage modification.

Such fraudulent activities are reportedly escalating in the state at the same time that house foreclosures and lists of farm foreclosures for sale are increasing in Ohio. In the lawsuit, Cordray reportedly sought civil penalties in behalf of homeowners who allegedly paid up front fees of $2,500 in the hope of having their loans modified.

The practice of requiring upfront fees that are over $75 from owners of properties under listings of foreclosed homes for sale who are trying to get modification is deemed illegal under the Ohio Debt Adjusters Act. Several firms have been cited for this practice, with the Better Business Bureau (BBB) of Dayton and Miami Valley reportedly giving the lowest rating possible to a number of foreclosure rescue servicers and debt relief companies.

Local reports reveal that the said Bureau has rated the National Homeownership Assistance Foundation an F, along with two other firms associated with it, the VA Payment Reduction Notification as well as the American Debt Relief Foundation of Cincinnati. The three firms are allegedly cited in complaints filed to the BBB by the AG Office. Market analysts believe that more companies will be cited as the number of foreclosed houses and lists of farm foreclosures for sale continue to rise in Ohio.

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