Idaho joins fight against foreclosure fraud

AP News
Posted: Nov 25, 2009 11:19 AM

Idaho Attorney General Lawrence Wasden is teaming with federal regulators and 26 other states to get tough on foreclosure rescue fraud.

The states and Federal Trade Commission are joining forces in Operation Stolen Hope, a nationwide program that combines law enforcement and public education.

Wasden says complaints this year about companies offering mortgage modification services are rising faster than any other type of business. His office has already sued two of these companies and launched investigations into others.

One lawsuit names APS Northwest Idaho, a Kootenai County mortgage modification company, over alleged violations of the state's consumer protection act. Another lawsuit names Apply 2 Save in Coeur d'Alene.

Investigators are focusing on companies requiring large, upfront payments or fees to modify mortgages.