AG: Kannapolis foreclosure 'scam' shut down

Published 12:00 am Friday, December 4, 2009

A Kannapolis foreclosure rescue operation is barred from collecting any money from consumers for foreclosure assistance or loan modifications, Attorney General Roy Cooper announced today in a press release.
On Wednesday, Wake County Superior Court Judge Donald Stephens agreed with Cooper’s request to temporarily bar Geoffrey Lamb of Cabarrus County from offering foreclosure and loan-modification services. The attorney general filed suit last week against Lamb, who did business as The Lamb Group and US Consumer Solutions. Cooper is seeking to shut down Lamb’s foreclosure rescue business permanently and win consumer refunds and civil penalties.
“Scammers entice struggling homeowners with false promises of lower mortgage payments, then do little or nothing to help them,” Cooper said. “We’ve made it illegal to take money up front for foreclosure or loan modification help, and we’re cracking down on violators.”
As alleged in the complaint, Lamb stated on his Web site that his firm was a “non-profit foreclosure relief organization” with a “success rate of 97%.” However, Lamb charged homeowners an up-front fee of as much as $1,500, told them not to contact their mortgage lenders, and then did little or nothing to help save their homes, the Attorney General’s office said in the press release.
Under North Carolina law, it’s illegal to charge an advance fee for foreclosure assistance or loan modifications.
Cooper contends Lamb promised a full refund if a consumer’s lender did not offer to rework their loan. The complaint alleges that Lamb failed to get loans modified but still refused to give consumers their money back.