Attorney General Joins Federal And State Officials In Urging Distressed Borrowers To Seek Free Help

DENVER — Attorney General John Suthers jointed state and federal officials today to urge borrowers at risk of losing their homes to use Colorado’s free Foreclosure Hotline,
1-877-601-HOPE (4673).

“Borrowers facing default or foreclosure should act now to save their homes,” Suthers said. “Free help is only a phone call away.”

The Foreclosure Hotline is staffed with HUD approved nonprofit housing counselors who can talk with them about their mortgage. Homeowners contacting the Fore-closure Hotline stand a good chance of saving their home with little or no cost.

Suthers said borrowers should be wary when trying to pay down their mortgage debts through either a loan modification or foreclosure rescue company. The Office of the Attorney General has received numerous complaints about some firms that offer to save homes or modify borrowers’ loans by offering lender negotiation services. Many of the complaints say the companies failed to deliver results despite charging substantial upfront fees.

Suthers also encouraged Coloradans who believe they have been victimized by a loan modification or foreclosure rescue company to report their experiences to the Attorney General’s Colorado Consumer Line: 1-800-222-4444.

The Attorney General has taken action to ensure borrowers are protected from firms violating the Colorado Foreclosure Protection Act, including reaching cease and desist agreements and an assurance of discontinuance with 17 foreclosure rescue and loan modification firms. The Attorney General also has investigations proceeding against six additional foreclosure rescue and loan modification outfits.

Under the Foreclosure Protection Act, enacted in 2006, these rescue firms cannot accept an upfront fee. The firms also must provide the borrower with a contract specifying the services that will be performed. These rescue firms also are prohibited from taking a lien or interest in the title to the home unless they provide certain disclosures and complies with several specific provisions of the Foreclosure Protection Act.

Effective July 1, 2009, the protections of the Foreclosure Protection Act will also protect borrowers who are not yet in default but are 30 days late on their payment. Therefore, a borrower does not need to be in foreclosure to be protected.

The Office of the Attorney General has received complaints that the moment a borrower is 30 days late they are inundated with offers for loan modification negotiation services. Effective July 1, 2009, these companies will have to conform with the Foreclosure Protection Act, even though no foreclosure has been instituted.

Before falling victim to unscrupulous firms the Attorney General urges borrowers to check out the firm. If it does not feel right remember that free help is only a phone call away by calling the Foreclosure Hotline: 1-877-601-HOPE.

COLORADO ATTORNEY GENERAL JOHN W. SUTHERS

Foreclosure Protection Act Enforcement Actions
§§ 6-1-1101, et seq., CRS and §§ 6-1-1111, et seq., CRS


Assurance of Discontinuance

Basil J. Baldwin d/b/a Hawk Financial SERVICES, Denver, CO:
CO company offering foreclosure consultant services to homeowners in distress. Foreclosure Protection Act (“FPA”) violations: consumer contracts noncompliant and up-front fee required.

Cease and Desist Notices:

AMERICAN FORECLOSURE SPECIALISTS, LLC, Owasso, Oklahoma:
Contract noncompliant with FPA and up-front fee required.

Community First Financial “CFF”, Lake Forest, CA:
Contract noncompliant with FPA and up-front fee required.

CRISIS MANAGEMENT LLC, Glendale, Arizona:
Contract noncompliant with FPA and up-front fee required.

Davis Foreclosure Assistance, Englewood, New Jersey:
Contract is noncompliant with FPA and homeowners paid $1200 up-front fee.

Debt Advocacy Center, Cleveland, Ohio:
Contract noncompliant with FPA and up-front fee required.

Denver Home Rescue, LLC, Denver, CO:
Contract noncompliant with FPA and up-front fee required.

Foreclosure Assistance Solutions, LLC, Clearwater, Florida:
d/b/a/: "FAS" and "Mortgage Second Chance." Contract noncompliant with FPA and up-front fee required.

Franklin Equity Corporation, Santa Ana, CA:
Contract noncompliant with FPA and up-front fee required.

FREEDOM FORECLOSURE Prevention SERVICES, LLC, Gilbert, Arizona: Contract noncompliant with FPA and up-front fee required.

Home Assure, LLC, Clearwater, and FL:
Contract noncompliant with FPA and up-front fee required.

Infinity funding group, Bohemia, New York:
Contract noncompliant with FPA and up-front fee required.

Mortgage assistance solutions, Inc. “MAS” Clearwater Florida:
d/b/a "Fresh Start Program" Headquarters is Beverly Hills, CA. Contract noncompliant with FPA and up-front fee required.

MORTGAGE FORECLOSURE SOLUTIONS, Inc., “MFS, Inc., Clearwater, Florida: Contract noncompliant with FPA and up-front fee required.

National Foreclosure Counseling Services (NFCS), Jacksonville, Florida
Contract noncompliant with FPA and up-front fee required. Company is a division of American Financial Corporation.

NEW HOPE Modifications, LLC, Bellmawr, New Jersey:
Contract noncompliant with FPA and required $1300 upfront fee.

UNITED HOME SAVERS, LLP, Orlando, FL:
Contract noncompliant with FPA and up-front fee required.

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