Minnesota Sues Mortgage Foreclsoure Consultants

Posted on January 31, 2009. Filed under: Foreclosure Defense, Fraud, Loan Modification, Mortgage Fraud, Mortgage Law |

Homeowners, stuck between falling home prices and a slack economy, are increasingly turning to companies that, for a fee, promise to help them avoid foreclosure.

But consumer advocates warn that homeowners should think twice before writing a check to a so-called mortgage consultant.

On Thursday, Minnesota Attorney General Lori Swanson filed lawsuits against two Florida companies that she said have ripped off troubled Minnesota homeowners.

Swanson alleged that IMC Financial Services and American Financial Corp., which is doing business as National Foreclosure Counseling Services (NFC), violated Minnesota law by charging upfront fees of as much as $1,850 to renegotiate mortgage terms and not doing so.

American Financial Corp. also has been sued by the attorneys general of Illinois and Colorado. In August, Swanson sued another mortgage foreclosure consulting firm based in Florida, as well as one based in New Jersey.

“These [kinds of] companies are very creative in finding a number of ways to capitalize on the foreclosure crisis and skirt existing law,” Swanson said in a statement Thursday. “We need to further tighten the laws on the books to provide the maximum level of protection to struggling homeowners in this rocky economy.”

via Minnesota sues mortgage advisers.

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One Response to “Minnesota Sues Mortgage Foreclsoure Consultants”

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Bravo for trying to help THE PEOPLE! When we ALL finally try to pull together, we might get our country back from the GREED MONGERS!

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