Castle Rock aka Loan Modification Solutions
After allegedly defrauding consumers, Castle rock is being sued by the Colorado attorney general. The suit names Castle Rock (Loan Modification Solutions) owners Robert and Nanette Auhll and their salesman Thomas Stefanszky, alleging they defrauded homeowners seeking loan modifications and foreclosure relief.
Under Colorado law, companies cannot seek an upfront fee for loan modification or foreclosure relief services which is exactly what the AG accuses Castle Rock (LMS) of doing, stating they collected $2,995 in upfront fees in exchange for loan mod services, totaling over $1 million over the last two years. The suit claims the company took the upfront fee, and did little more than fax the homeowners’ documents to their lenders.
Castle Rock is accused of using “deceptive advertising” to attract customers (by advertising that they use “skilled” and “professional” negotiators to secure modifications) as well as “ignored requests” for refunds despite their money back guarantee.
They’ve started yet another company?!
Last fall, the company has allegedly started up a new business under the name Principal Financial Partners, which charges $3,495 up front for homeowners “interested in reducing their principal mortgage balance.”
The AG has filed a preliminary injunction to stop both of their businesses from engaging in “deceptive trade practices” and the lawsuit seeks to recover victims’ money.