Minnesota AG Accuses Six Foreclosure Rescue Operators In Civil Suit Of Illegally Taking Upfront Fees

In Minneapolis, Minnesota, the Minneapolis Star Tribune reports:

• [Minnesota] Attorney General Lori Swanson on Thursday sued six out-of-state foreclosure consulting companies who she claims defrauded Minnesota homeowners out of thousands of dollars. Swanson, who filed the suits in Hennepin County District Court, is also seeking injunctions to stop the companies from operating in Minnesota. The suits allege the companies violated state law by collecting large fees before performing the services they were contracted to complete. [...] In each case, the lawyers said, the companies asked for money up front ranging from about $1,000 to almost $2,400. The firms then demanded more money to continue working with the customers, all of whom were in arrears on their mortgages.

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• The lawsuits filed Thursday are against National Foreclosure Relief, a Nevada corporation with a California business address; Lewis Loss Mitigation of Alabama, which also does business as Stop Foreclosure and Lewis and Associates Consulting; D.R. Financial Services of California, which also does business as D.R. Financial and Superior Home Loans; American Foreclosure Specialists of Oklahoma; Mortgage Default Assistance of Florida, and Home Assure of Florida. [...] The American Foreclosure Specialists website mentioned that the company was Christian-run and even quoted Bible passages to reassure prospective clients, the attorney general's office said Thursday.

For more, see Attorney general sues foreclosure firms (She says the consulting companies victimized people already facing foreclosure, costing them time and money).

See also, KARE-TV Channel 11: Attorney General targets foreclosure consultants.

For earlier report on a December, 2007 Minnesota Attorney General civil suit accusing two other foreclosure rescue operators of violating state law, see Minnesota AG Press Release - Swanson Sues Two Out-Of-State Mortgage "Foreclosure Consultants" For Charging Fees But Not Delivering Promised Services (Suit Alleges Violation of 2004 Law that Prohibits Foreclosure Consultants From Charging Fees Before Services are Performed).