Minnesota AG Targets Two More Upfront Fee Foreclosure Rescue Operators In Civil Suits

In St. Paul, Minnesota, My Fox TV Channel 9 reports:

• Two more out-of-state mortgage “foreclosure consultants” have been hit with lawsuits from Minnesota Attorney General Lori Swanson. A total of 10 companies have now been sued by Swanson over similar allegations. The lawsuit,(1) filed Monday, allege a Florida and New Jersey company each used websites, targeted mailings and phone calls to solicit at-risk homeowners with assurance their company could stop the foreclosure process and save their home. The lawsuits are against Florida-based Law & Associates, LLC,(2) and New Jersey-based Davis Mitigation, Inc, which also conducts business as Davis Foreclosure Assistance) in N.J., New York and Florida.

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• A 2004 Minnesota law bars “foreclosure consultants” from charging any compensation until after the foreclosure consultant has “fully performed each and every service the foreclosure consultant contracted to perform or represented he or she would perform.”

For more, see Minnesota Atty. Gen. Sues 2 More 'Foreclosure Consultants'.

See also, Minneapolis Star Tribune: State sues two firms that asked cash for foreclosure assistance (The attorney general says some companies claiming to help in a foreclosure do anything but).

(1) According to the story, the suits allege the companies unlawfully charged customers up-front fees of up to $1790 before any services were performed, failed to include required safeguards in their contracts with Minnesota homeowners and failed to deliver promised services.

(2) This firm is also being hammered by the Florida AG in State of Florida v. Law & Associates, et al., alleging an upfront fee foreclosure rescue operation.