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Idaho Cuts Out Foreclosed Homes Scammer

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By : John Cutts    99 or more times read
A company sued by the U.S. Federal Trade Commission in February for violation of the Federal Trade Commission Act was ordered by the Idaho Department of Finance to stop operating its foreclosure-relief business in Idaho.

National Foreclosure Relief Inc., based in Nevada, has been offering mortgage loan restructuring services to homeowners in Idaho whose houses are in danger of becoming foreclosed homes.

Idaho state finance officials said the company was never issued a license to operate a business helping residents save their houses from becoming foreclosed homes.

The officials said they became aware of the activities of National Foreclosure when they found out the case of a couple who gave $1,875 to the firm as payment for services that would help them save their house from being added to lists of foreclosure homes.

The company also debited $1,200 three times from the coupleís banking account purportedly as initial payments for their restructured mortgage loan. To their outrage, they later found out that the company did not do any loan modification negotiations with their mortgage lender and had used up all their money. The coupleís house ultimately was added to their lenderís inventory of foreclosed homes.

Gavin Gee, director of the Idaho Department of Finance, said it is disgusting when shady companies collect money for loan modification assistance, a service available from nonprofits and from HUD counselors. It is even more disgusting that they deceive homeowners already distressed by the possibility of their houses becoming foreclosed homes.

What the Idaho Department of Finance issued to National Foreclosure was a cease and desist order, instructing the company to immediately stop its mortgage loan restructuring services in Idaho.

Idaho foreclosures reached 4,293 units in the first quarter this year, with 1 house in every 147 housing units hit with a foreclosure filing. The state had 2,141 housing units receiving notices of default, 1,954 housing units receiving notices of trustee sale and 198 real estate owned foreclosed homes.

Idaho is eighth in RealtyTracís ranking of states by foreclosure rates in the first quarter.

In a news conference earlier this month, Treasury Secretary Timothy Geithner, Attorney General Eric Holder, HUD Secretary Shaun Donovan and FBI officials announced their crackdown against companies advertising their loan restructuring services and targeting distressed homeowners.

Lastly, the Idaho Finance Department advised homeowners whose homes are at risk of becoming foreclosed homes to call nonprofits offering free counseling and loan modification assistance for free.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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