Va AG sues VB-based mortgage companies

VIRGINIA BEACH, Va. (WAVY) - State Attorney General Ken Cuccinelli filed two separate lawsuits Monday against two Virginia Beach-based mortgage loan modification companies.

His office accused Nationwide Loan Modification Bureau and Real Estate Resolutions of charging illegal advance fees of up to $1,200 before performing "foreclosure rescue" services for their customers.

The attorney general alleges that the companies violated the Virginia Foreclosure Rescue law .

The Foreclosure Rescue law prohibits a supplier of foreclosure avoidance or prevention services to from "charging or receiving a fee prior to the full and complete performance of the services it has agreed to perform, if the transaction does not involve the sale or transfer of residential real property."

"During these difficult times, the last thing people need is to be kicked when they are down," Cuccinelli said. "The advance fees collected should be refunded where services have not been completely performed. I am pleased that my office has been able to address the alleged wrongdoing and I hope these cases will send a strong message that we intend to enforce our foreclosure rescue law."

The suit seeks enjoin Nationwide and Real Estate Resolutions from violating the Virginia Consumer Protection Act and that any money be returned to consumers where services were not performed completely. The suit also seeks civil penalties of up to $2,500 for each violation of the act.

On the web:

Trade and Commerce Code of Virginia: Prohibited Practices; Foreclosure Rescue