Boise homeowners struggle with loan modification fraud!
With foreclosures on the Boise real estate market increasing in 20009, consumer complaints of homeowners seeking loan modifications did too. As foreclosure rates have gone through the roof, so have fraud claims against people who supposedly do loan modifications, according to the Idaho attorney generals office. Those complaints constituted 19 percent of all those received by the office.
"We received reports of outrageous fraud," said Attorney General Lawrence Wasden. "Some of these operators took advantage of desperate homeowners by charging hundreds or even thousands of dollars in upfront fees, while taking no action to modify the mortgage." The Attorney Generals office rapidly sought out and received three settlements and filed two lawsuits on behalf of citizens and victims. This kind of criminal act leaves nearly all homeowners in the Boise real estate market without any avenue to keep their homes.
It also hired a part-time house counselor to work with Boise real estate owners to facilitate loan modifications and to reverse, postpone or cancel foreclosures. To help out, free foreclosure handbooks were printed up and handed out.
Collecting restitution for the Idaho taxpayers, Wardens’ office brought in 7.4 million dollars, is an important function for the Attorney Generals office, and average of $12.14 for every tax dollar spent on funding for Consumer Affairs. In addition to that, Wasden and company gathered another $5.9 million dollars in civil penalties, fees and fines for the Idaho tax payers, which is the greatest haul to date for that classification. Back in 1998, the AG's office negotiated a settlement with the tobacco industry which netted Idahoans a $31 million windfall for the year of 2009. With a total net to date of $254 million, this agreement has helped Idaho tremendously.
When you compare the 13 salaried staff members in the consumer operations department, with the $44 million that Boise real estate holders made back from their efforts, the department is a boon for Idaho. The department was very effective in the broad range of topics it worked in last year. It prosecuted and settled consumer protection cases with Eli Lilly & Co., other pharmaceutical manufacturers and several businesses. Illegal monopolies and price fixing remained huge targets, as well as any issue in the anti-trust arena. They even managed to reach an agreement involving a price fixing vitamin company.
The telemarketing industry as well, has been put on notice, with the addition of over 900,000 phone numbers to the protective 'do not call" list. Soon the office will release an important DVD which teaches children how to avoid sexual predators online, called "ProtecTeens".
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