Mass AG Obtains Injunction Against Upfront Fee Foreclosure Rescue Operator; 1st Lawsuit Invoking New State Regs Targeting "Home-Saving" Activities

In Essex County, Massachusetts, The Boston Globe reports:

• The office of Massachusetts Attorney General Martha Coakley said [Friday] that she has obtained a temporary restraining order against David Coleman, "a Methuen mortgage broker who allegedly preyed upon financially distressed homeowners by representing himself to be an attorney and a bankruptcy expert who offered to file bankruptcy petitions to save consumers’ homes from foreclosure."(1)

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• A press release issued by Coakley's office said: "Coleman would target vulnerable homeowners on the brink of foreclosure by combing newspapers for victims’ contact information in foreclosure notices. He would then allegedly make unsolicited calls to the homeowners where he would offer to save their homes from foreclosure by assisting them in filing for bankruptcy in exchange for a $1,000 cash fee upfront."

For more, see Mass. AG sues mortgage broker.

Go here for the Massachusetts AG's press release: AG General Martha Coakley Obtains Restraining Order Against Methuen Mortgage Broker Who Deceived Homeowners into Believing He Could Assist Them in Saving Their Homes From Foreclosure (First Lawsuit Alleging Violations of Attorney General Coakley’s Regulations on Foreclosure-Related Services ).

(1) According to the story, the temporary restraining order that Coakley obtained in Essex Superior Court prohibits Coleman and his company, Mortgage Finders of New England, from contacting individuals to offer foreclosure related services or assisting individuals with filing for bankruptcy, Coakley's office said. loan modification