Virginia AG Tags Another Loan Modification Outfit With Suit Alleging Illegal Clipping Of Dozens Out Of Upfront Fees

In Virginia Beach, Virginia, The Virginian Pilot reports:

• Attorney General Ken Cuccinelli on Tuesday filed a civil lawsuit accusing a Virginia Beach mortgage loan modification company of charging illegal advance fees for providing foreclosure rescue services. The lawsuit alleges that National Foreclosure Solutions, with an office at 4605 Pembroke Lake Circle, has been violating the Virginia foreclosure rescue law, which prohibits fees charged "prior to the full and complete performance of the services it has agreed to perform."

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• The suit says the company collected advance fees from about 200 customers. The lawsuit, filed in Virginia Beach Circuit Court, requests that the court stop NFS from its alleged violations of the law and that any illegally collected money be returned to consumers. The suit also seeks civil penalties of up to $2,500 per violation plus the costs of the investigation of up to $1,000 per violation.

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• The Attorney General's Office and the U.S. Attorney's Office have been targeting fraudulent mortgage rescue companies since the real estate market collapsed and foreclosures skyrocketed. Many cases have resulted in civil penalties. Others have been prosecuted as criminal cases.

For the story, see Attorney general sues Va. Beach foreclosure rescue service.

For the Virginia Attorney general press release, see Attorney General Cuccinelli announces suit against Virginia Beach-based mortgage modification company (Company allegedly charged illegal advance fees for "foreclosure rescue" services).