Restitution of more than $280,000 in losses is sought for consumers
%20(1).jpg)
Five mortgage foreclosure companies and two company owners are facing a lawsuit over allegations that they deceived homeowners and consumers into mortgage loan modifications.
The lawsuit is seeking injunctive relief and restitution of more than $280,000 for all consumers who are currently or have ever been in a transaction with any of the companies or their affiliates. The Pennsylvania attorney general filed the suit in the Philadelphia County Common Pleas Court.
The complainants entered into mortgage modification agreements with companies including GMK Solutions, the Foreclosure Law Center, Century Legal Group, Alia Law Group, and the Law Offices of Drew Alia. These entities were owned by Mark Goldstein and Drew Alia.
Pennsylvania’s Office of the Attorney General received 21 complaints from Pennsylvania consumers and almost 50 other consumers from across the US. The companies and owners conducted the scheme between 2008 and 2015.
As part of the operation, the entities entered into contracts with homeowners for the conduct of a home loan audit and a mortgage modification. Homeowners expected the agreements would save their homes from foreclosure by lowering their monthly mortgage payments or interest rates.
Homeowners paid cash deposits, usually worth thousands of dollars, to the defendants, who then failed to fulfill their agreements. To hide their scam, the defendants told homeowners not to contact their lenders or make payments because they were negotiating on the homeowners’ behalf.
As a result of the scheme, some of the homeowners ultimately lost their homes in sheriff’s sales.
The lawsuit is based on Pennsylvania’s Unfair Trade Practices and Consumer Protection Law and the Pennsylvania Mortgage Licensing Act.
