Friday, March 13, 2009

State AG Files Civil Suits Against Two South Jersey Loan Modification Firms Promoting "Hope" - Won't Rule Out Future Criminal Action

In Trenton, New Jersey, KYW Radio 1060 (Philadelphia) reports:
  • New Jersey officials have filed three separate lawsuits, two in Camden County Superior Court, alleging mortgage fraud on a large scale. The actions were announced Wednesday in Trenton during a midday press conference by Attorney General Anne Milgram, who says she decided to take the civil route in attempts to shut the operations down quickly. But she won’t rule out later criminal prosecution against any of the 11 people (four from South Jersey) named in the civil actions.

  • In the two Camden County cases, it is alleged that "Hope Now Financial Services" of Cherry Hill and "New Hope Modifications" of Bellmawr attempted to align themselves with a national nonprofit effort that helps low-income people stay in their homes and avoid foreclosure. The two Camden County firms, in fact, have no connection with the Hope Now Alliance, a counseling service created in conjunction with the federal government.

  • What the firms did, according to Milgram, is scam more than 100 people from as far away as Texas. Milgram told reporters, “These businesses collected substantial upfront fees from distressed mortgage holders for loan modification services, but did nothing to actually help.” The upfront fees were as much as $3,000 from each individual, many of whom lost their homes to foreclosure and suffered perhaps irreparable harm to the credit ratings, according to officials. Two principals named in the New Hope suit -- Donna Fisher and Brian Mammoccio -- reside in Mullica Hill (Gloucester County), NJ.

For the story, see Officials Say Finance Groups Preyed on NJ Homeowners.

For more from the New Jersey Attorney General's Office, see:

posted by Home Equity Theft Reporter at 4:05 AM