KIVITV.COM | Boise. News, Breaking News, Weather and Sports-Refunds Coming for Idaho Mortgage Modification Victims

Refunds Coming for Idaho Mortgage Modification Victims

Twelve Idaho homeowners who paid a Meridian man, Paul Clarence Aughtry, IV, for mortgage loan modifications will receive refunds totaling $12,400 as a result of settlement agreements with State Attorney General Lawrence Wasden and the Idaho Department of Finance.  As a result, Aughtry is prohibited from engaging in loan modification activities in Idaho.

According to Attorney's General spokesman Bob Cooper, "Aughtry operated International Co-Op LLC and accepted money from several consumers, offering to negotiate mortgage modifications with their loan servicers.  Aughtry was not licensed to perform such modifications.  He allegedly failed to contact many of the consumers' servicers as promised, and failed to effect the mortgage modifications his clients paid for."

"Companies offering mortgage loan modification services in Idaho are required to be licensed," said Gavin Gee, director of the Idaho Department of Finance.  "The Department of Finance will continue to take action against mortgage loan modification companies that ignore Idaho's licensing laws and victimize Idaho homeowners."

The Attorney General and the Department of Finance began their investigation after receiving a complaint from a consumer who paid Aughtry $1,800 for mortgage modification services that Aughtry never fully performed.  The consumer was unaware that Aughtry was not properly licensed or that it was unlawful under the Idaho Residential Mortgages Practices Act for Aughtry to charge the consumer upfront fees for mortgage modification services. 

The Attorney General and the Department of Finance received additional complaints as the investigation progressed.

"Homeowners with financial difficulties do not need to pay a third party to negotiate a mortgage modification," Wasden stated.  "The services that these so-called mortgage modification companies advertise are available free from housing counselors who understand the programs available to homeowners and who know how to work effectively with servicers."