Illinois AG Continues Putting The Hammer On Upfront Fee Foreclosure Rescue Operators As Seven More Lawsuits Are Filed

From the Office of the Illinois Attorney General:

• Attorney General Lisa Madigan [yesterday] announced that she has filed seven new lawsuits(1) against so-called mortgage “rescue” companies and warned consumers about an alarming rise in these scams that prey on vulnerable homeowners on the verge of foreclosure.

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• In each of the lawsuits filed late [Monday], Madigan alleges that con artists targeted homeowners who have fallen behind on their mortgage payments and promised that, for an upfront 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 upfront fees, they failed to negotiate or perform any services on behalf of the homeowners, leaving consumers at risk of losing their homes to foreclosure.

• 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. [...] With these new filings, Madigan has brought lawsuits against 22 mortgage rescue fraud companies.

For more, see Madigan Sues Seven Companies For Mortgage Rescue Fraud (Attorney General Urges Consumers to Resist “Rescue” Schemes and Seek Reputable Assistance).

(1) Those companies sued, according to the Illinois AG press release (and links to copies of the lawsuits), are:

• National Foreclosure Counseling Services, 7954 Baymeadows Way, Jacksonville, Fla.,
• Foreclosure Solutions, 488 Pine Street, Burlington, Wis.,
• Homestead Protection Services, 151 Southhall Lane, Maitland, Fla.,
• Home Foreclosure Solutions, 17550 South Williamsburg Drive, Plainfield, Ill.,
• Foreclosure Experts, 220 S. State Street, Chicago,
• Mason Capital Group, 18375 Ventura Blvd., Tarzana, Ca.,
• StopMyForeclosure.net, 3914 Abbotsford Road, Rockford, Ill.