Boise, ID – April 27, 2009 – (RealEstateRama) — The Idaho Department of Finance has ordered National Foreclosure Relief, Inc. (National Foreclosure), a Nevada corporation, to cease and desist from offering and selling mortgage loan modification services to Idaho residents. The company apparently targets distressed homeowners seeking to avoid foreclosure on their homes. The company has never been licensed in Idaho to engage in the offer or sale of mortgage loan modification services, as required by Idaho law. The Federal Trade Commission sued National Foreclosure Relief, Inc., in February 2009, alleging violations of the Federal Trade Commission Act by engaging in misrepresentations of the company’s services to consumers.

The Idaho Department of Finance became aware of this company operating in Idaho without a license when it received a complaint from an Idaho couple. The couple had paid $1,875 in upfront fees to National Foreclosure for assistance in avoiding foreclosure on their home of 23 years. National Foreclosure also debited from the couple’s bank account three payments of $1,200 each, which the couple understood would be applied primarily toward their monthly mortgage payments. The couple later learned that National Foreclosure had pocketed all of the money it had received from the couple, who ultimately lost their home to foreclosure. “It is a sad result when distressed homeowners reach out for help with their mortgage problems and become victimized by unscrupulous mortgage loan modification companies, often losing both their home and the upfront fees they’ve paid to such companies,” said Department of Finance Director Gavin Gee.

In the cease and desist order, the department ordered National Foreclosure to immediately stop offering mortgage modification services in Idaho without a license, and from other activities in violation of applicable Idaho law.

In a related press release, the Idaho Department of Finance suggests that homeowners having difficulty paying their mortgages should promptly contact their lenders or servicers to explore possible workout arrangements. There are also organizations offering advice and assistance to homeowners for free. “Many of these unlicensed mortgage modification companies turn out to be scam artists preying on the vulnerability of Idahoans desperate to keep their home,” Gee said. “A good starting point in determining whether a mortgage loan modification company is a legitimate company is to check with the department to see if the company is licensed in Idaho.”

The department provides information on a variety of FREE foreclosure prevention resources that are available to distressed homeowners. That information can be accessed at the following website address: http://finance.idaho.gov/Mortgage/ForeclosureResources.aspx.


Michael Larsen
Bureau Chief
Consumer Finance Bureau
(208) 332-8000


The Department of Finance was originally created by the State Legislature in 1905. Its statutory authority derives from the Idaho Code, Title 67, Section 67-2701 and the various laws under which it operates. The Director is appointed by the Governor with the advice and consent of the Idaho Senate.


Michael Larsen
Consumer Finance Bureau Chief
Phone: (208) 332-8000

Idaho Department of Finance
800 Park Blvd., Suite 200
Boise, ID 83712
P.O. Box 83720
Boise, ID 83720-0031
Phone: (208)332-8000
Toll-Free (Within Idaho Only): 1-888-346-3378

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