Colorado AG Receives "Good Behavior" Promises From Ten Loan Modification Outfits Accused Of Failing To Deliver Results, Deceptive Advertising

From the Office of the Colorado Attorney General:

• Colorado Attorney General John Suthers announced [...] that his office has taken action against 10 loan-modification firms doing business in Colorado as part of his office’s efforts to crack down on loan-modification companies preying on Coloradans in foreclosure. These 10 companies, nine of which are located outside Colorado, either failed to deliver results to Colorado consumers or engaged in deceptive advertising. The actions taken against the companies will require them to either comply with Colorado law or not do business in the state.(1)

• These companies are barred from doing business in Colorado unless they comply with state laws, including requirements that only mortgage brokers licensed in Colorado or attorneys licensed in Colorado perform loan modifications. The companies also will be barred from using false or deceptive advertisements. The companies also will be required to comply with provisions of the Colorado Foreclosure Protection Act, such as not charging an upfront fee and using contracts that specifically lay out the agreement between the consumer and the loan-modification company.

For the entire Colorado AG press release, see Attorney General announces actions taken against 10 companies preying on Colorado borrowers.

(1) Acxcording to the press release, since the last sweep in July, the Office of the Attorney General has obtained assurances of voluntary compliance with:

• Abbotsford, LLC, d/b/a StopMyForeclosure.net and United Financial Solutions Group LLC located in Queen Creek, Ariz., and Phoenix, Ariz.;
• Airan2, Airan-Pace, Crose & Fernandez, P.A. a law firm located in Coral Gables, Fla.;
• American Summit Financial Services, Inc. and its owner Peter Johnson located in Boulder;
• Best Interest Rate Mortgage Company (BIRMCO) and its owner Michael DiPlacido, located in Westmont, N.J.;
• Financial Solutions Law Group, d/b/a Financial Solutions, and Echo Loans and its owner Kelly David Christensen located in Rancho Santa Margarita, Calif.;
• Hope 4 Homeowners America, LLC and its owner Cheryl Barnett located in Birmingham, Mich.;
• Key Mortgage, Inc. located in Baltimore, Md.;
• Gabee, LLC, d/b/a Modification HUB located in Granite Bay, Calif.;
• Modify Loans, Inc. located in Irvine, Calif.; and
• Pier West Captial, Inc., d/b/a Loan Modification Solutions located in San Clemente, Calif.