Michigan AG Criminal Prosecution Yields Guilty Pleas From Three Outfits For Bogus Loan Modification Services

In Lansing, Michigan, The Bay City Times reports:

• Victims of foreclosure fraud schemes by three Michigan companies will be able to receive refunds, state Attorney General Mike Cox announced [...]. SaveMyHome USA, Payment Doctors and the Michigan Economic Reinstatement Program each pleaded guilty to one count of violating the Michigan Credit Services Protection Act, Cox said in a press release.

• According to an undercover investigation by the Attorney General's office, the three companies charged borrowers upfront fees as part of mortgage modification assistance to homeowners facing foreclosure. Charging the fees upfront is prohibited by law, Cox said. The companies claimed they would help homeowners keep their homes by working with their lenders, but in many cases, were unable to do so, and the victims could not get their money back. The companies, which are based in southeast Michigan, had customers all around the state.

Source: State Attorney General seeks to refund victims of foreclosure fraud.

For the related Michigan AG press releases, see:

• Victims of Foreclosure Rescue Fraud to Receive Refunds,
• Cox Charges Five for Foreclosure Rescue Fraud.