Indiana AG Files Three More Lawsuits Against Foreclosure Rescue Outfits For Violating State Rules; Runs String Of Legal Actions To 22 This Year

In Indianapolis, Indiana, The Indianapolis Star reports:

• Despite a two-year crackdown by his office, the state attorney general said for-profit foreclosure consultants are still ripping off Indiana homeowners by promising mortgage foreclosure relief but not providing it. Attorney General Gregory Zoeller filed three more lawsuits Friday against "foreclosure rescue" companies, using new state regulations meant to make it easier to put shady operators out of business.

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• A new state law, effective July 1, requires for-profit foreclosure prevention companies to post a $25,000 bond with the attorney general in order to do business in the state. The three lawsuits are the first against foreclosure prevention companies under the new law.

• The new cases make 22 lawsuits that the attorney general has filed this year against foreclosure consultants. Investigations are under way on an additional 154 consumer complaints that might lead to additional lawsuits. Last year the AG filed 11 lawsuits against foreclosure consultants.

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• The new lawsuits were filed against Foreclosure Relief Services National of Indianapolis; Home Loan Modification of San Diego; and a group of eight interrelated companies and individuals in Florida. All are charged with not paying the Indiana bond and other violations of state consumer laws.

For the story, see State warns against 'foreclosure rescues' (Attorney general files 3 new lawsuits and says rip-offs are continuing).