National Foreclosure Relief, Inc. (National Foreclosure), a Nevada corporation, has been ordered by The Idaho Department of Finance to cease and desist from offering and selling mortgage loan modification services to Idaho residents. The company apparently targets distressed homeowners seeking to avoid foreclosure on their homes. The company has never been licensed in Idaho to engage in the offer or sale of mortgage loan modification services, as required by Idaho law. The Federal Trade Commission sued National Foreclosure Relief, Inc., in February 2009, alleging violations of the Federal Trade Commission Act by engaging in misrepresentations of the company’s services to consumers.
The Idaho Department of Finance became aware of this company operating in Idaho without a license when it received a complaint from an Idaho couple. The couple had paid $1,875 in upfront fees to National Foreclosure for assistance in avoiding foreclosure on their home of 23 years. National Foreclosure also debited from the couple’s bank account three payments of $1,200 each, which the couple understood would be applied primarily toward their monthly mortgage payments. The couple later learned that National Foreclosure had pocketed all of the money it had received from the couple, who ultimately lost their home to foreclosure. “It is a sad result when distressed homeowners reach out for help with their mortgage problems and become victimized by unscrupulous mortgage loan modification companies, often losing both their home and the upfront fees they’ve paid to such companies,” said Department of Finance Director Gavin Gee.
In the cease and desist order, the department ordered National Foreclosure to immediately stop offering mortgage modification services in Idaho without a license, and from other activities in violation of applicable Idaho law.