Texas AG Files Suit Against Another Upfront Fee Foreclosure Rescue Operator

(originally posted 10-14-07)
According to a press release from the Texas AG's office:

• Texas Attorney General Greg Abbott took legal action Thursday against an unlawful Arizona-based foreclosure rescue operation that targeted struggling Texas homeowners. According to court documents, Abell Mediation, Inc., and its president and vice-president, Elizabeth Cory and Michael Cory, respectively, fraudulently advertised that the company could save homeowners from imminent foreclosure. The enforcement action seeks a temporary and permanent injunction stopping the defendants from falsely soliciting distressed Texas homeowners.

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• Homeowners who contacted Abell Mediation, Inc. were pressured to pay fees between $800 and $1,200 immediately. Abell Mediation, Inc. strictly prohibited homeowners from contacting their mortgage lenders. After homeowners paid the fees, many never heard back from the defendants’ representatives and often lost their homes anyway.

For more, see the Texas AG's press release - Attorney General Abbott Takes Legal Action Against Foreclosure Rescue Firm's Unlawful Texas Operations (Clients of Abell Mediation, Inc. urged to call their lenders immediately).

For additional information:

• To read the lawsuit, see State of Texas v. Abell Mediation, Inc., et al.,
• Go here to read an alleged sample deceptive letter used by the operator,
• Go here to view the Abell Mediation Web Site,
• Posts on other lawsuits brought by the Texas AG against foreclosure rescue operators.

For story update (12-10-08), see Final judgment against Abell Mediation, Inc..