IL Attorney General Sues Seven Foreclosure “Rescue” Firms

Posted by Orb Staff on November 19, 2008 No Comments
Categories : Mortgage Servicing

Illinois Attorney General Lisa Madigan has filed seven new lawsuits against so-called mortgage rescue companies and officially warned consumers about an alarming rise in these scams that prey on vulnerable homeowners on the verge of foreclosure.

In each of the lawsuits, Madigan alleges that con artists targeted homeowners who had fallen behind on their mortgage payments and promised that, for an up-front fee, the scammers could negotiate with the mortgage lenders to reduce the payments and save their homes. However, according to Madigan's complaints, after these ‘consultants’ collected the up-front fees, they failed to negotiate or perform any services on behalf of the homeowners.

This tactic violates Illinois' Mortgage Rescue Fraud Act, which prohibits mortgage rescue companies from requiring payment from consumers prior to completing all the terms of a rescue contract. The law also requires rescue businesses to fully disclose to a homeowner the exact terms and nature of the proposed rescue services and the homeowner's right to cancel the contract.

Madigan filed lawsuits against the following companies: National Foreclosure Counseling Services, Foreclosure Solutions, Homestead Protection Services, Home Foreclosure Solutions, Foreclosure Experts, Mason Capital Group and StopMyForeclosure.net.

Source: Office Of Illinois Attorney General Lisa Madigan

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