Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Colorado AG suing Loan Modification Solutions for alleged deceptive trade practices

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.”

Advertisement. Scroll to continue reading.

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.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

5 Comments

5 Comments

  1. MH for Movoto

    April 1, 2011 at 2:45 pm

    Isn’t Castle Rock a brand of wine?

  2. Booker Myles

    June 1, 2011 at 1:41 am

    Thanks for your article. I commend the Colorado AG for going after this company, and I hope any other commpany like this one.

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Real Estate Technology

(TECH NEWS) It turns out that Internet of Things, like smart bulbs in homes, are not secure and give up your info - here...

Real Estate Marketing

(MARKETING) Your fancy, self-animating website might be making people violently ill, even if it is insanely beautiful. Sorry...

Real Estate Marketing

(MARKETING) Conduit is a CRM that does more than CRM, it analyzes your networking data to help you see how to improve your relationships.

Real Estate Corporate

(REAL ESTATE) Zillow has long been a data powerhouse, but a lawsuit about a $150M listing offers a look into listings claims.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.