subject: Loan Modification Provider Settles Lawsuits Filed By Owners Of Va Foreclosed Homes [print this page] The American Neighborhood Housing Foundation has agreed to settle charges filed by several VA foreclosed homes involving loan modifications. The Chesapeake-based mortgage modification firm entered into a settlement agreement with Virginia Attorney General Ken Cuccinelli.
As part of the settlement agreement, the company would refund up to $94,000 to about 273 VA foreclosed homeowners, who have complained about the firms illegal charging of advance fees for foreclosure rescue services. The complainants claimed that some other practices of the American Neighborhood Housing Foundation were also deceptive.
The mortgage loan modification provider also agreed to pay a civil penalty worth $5,000 to each of the 273 complainants. It also committed to reimburse up to $10,000 to the state for overall attorneys fees and other costs related to the foreclosure-related lawsuit.
Loan modification is becoming an equally controversial issue as foreclosures. Many owners of VA foreclosed homes have been applying for mortgage modification programs in an attempt to prevent foreclosures. However, lenders and modification providers have implemented stricter regulations in screening applicants amid a rise of volume of homeowners who are falling into foreclosures not just in Virginia, but also in other states.
The fight is not confined to the state. In Georgia, many owners of foreclosure homes are also rushing to apply for and receive loan modifications. For instance, the rise in Davis Oaks in Atlanta GA foreclosures has paved the way for numerous applications for loan modifications. However, in the area, the problem is usually related to dual tracking (or double tracking).
Amid the increase of Davis Oaks in Atlanta GA foreclosures, many banks proceeded to go on and foreclose or repossess homes. This is how dual tracking works. Homes of mortgage borrowers are foreclosed even if the banks and the homeowners are still in negotiations over possible loan modifications. Thus, a homeowner remains clueless that his home is already getting to final stages of foreclosures.
Dual tracking is an illegal practice. It is logical that it was part of the problem that led to the court action of owners of VA foreclosed homes against American Neighborhood Housing Foundation. But the law seems to favor aggrieved homeowners.
