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Mortgage ‘rescue’ crackdown continues

Troubles abound for those accused of trying to make a quick buck off the foreclosure crisis.

Virginia AG Ken Cuccinelli has announced a third settlement with a company that allegedly charged illegal advance fees for “foreclosure rescue” services. A Virginia Beach firm has agreed to refund $7,800 to five customers and to pay $5,000 to the state.

Hardly pausing for breath, Cuccinelli’s office was off to the courthouse with a lawsuit against yet another mortgage loan modification company.  “R.L. Brad Street LLC” allegedly charged distressed homeowners up to $3,000 before performing any services.  The civil suit against the company is filed in Chesapeake Circuit Court, Cuccinelli’s office said.

Meanwhile, a Chesapeake woman pleaded guilty this week in a similar scheme where homeowners hoped to save their homes, only to lose out in the end. Kathleen Harps faces up to 20 years in prison when she’s sentenced in federal court in November.

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