COVINGTON – Louisiana Attorney General Buddy Caldwell has brought suit against a California-based company, accusing it of falsely promising mortgage relief to financially distressed Louisiana homeowners.
Caldwell filed suit against Home Preservation Services in the 22nd Judicial District Court on July 30.
According to the suit, defendant Home Preservation Services is a California-based company that claims to offer “foreclosure rescue” and “loan-modification schemes” to financially distressed homeowners in Louisiana. Through mail solicitations, the defendant allegedly initiated contact with homeowners, advertising a supposed affiliation with the Federal Government’s “Making Home Affordable Plan and Stability Initiative.” The company purportedly led homeowners to believe that, after submitting paperwork, mortgage loan documents, personal identifying information and a substantial upfront payment, their mortgage loans would be renegotiated, their delinquent payments would be covered and their monthly mortgage bill would be reduced.
However, the suit alleges that the results Home Preservation Services promised were false. Caldwell claims that no loan modifications were ever negotiated and further contends the defendant never even made contact with a single mortgage lender.
The defendant is accused of intentionally defrauding Louisiana homeowners and of violating the Louisiana Unfair Trade Practices Act, the Consumer Protection Law and the False Advertising Statute. The Attorney General argues that Home Preservation Services’s allegedly fraudulent actions should be prosecuted as mortgage fraud.
Caldwell seeks permanent injunctive relief, restraining the defendant from continuing its “unfair” and “deceptive” acts. He also seeks compensation for the “thousands of dollars” that he claims the defendant fraudulently took from homeowners, civil fines and penalties and legal and attorney fees.
The case has been assigned to Division F Judge Martin Coady.
Case no. 2014-13358.