Zoeller files charges against foreclosure consultants

Keith Loria Apr. 10, 2009, 2:15pm

Greg Zoeller (R)

INDIANAPOLIS (Legal Newsline)- Indiana Attorney General Greg Zoeller has brought charges against five foreclosure consultant companies over state violations.

The suits were filed in Boone, Clark, Delaware, Grant and Marion counties, and targeted foreclosure consultants who were allegedly violating the Deceptive Consumer Sales Act, Credit Services Organizations Act and the Mortgage Rescue Protection Fraud Act.

"We recognize there is a foreclosure crisis in the country. Indiana has the tools in place that can help consumers avoid becoming victims of for-profit foreclosure consultants' bad intentions," Zoeller said. "Free mortgage counseling resources are available to Hoosiers that should be explored before paying a foreclosure consultant."

The companies targeted were Scottsdale, Ariz.-based Foreclosure Assistance, LLC, Melbourne, Fla.-based Homeownership Preservation Group, LLC, Carlsbad, Calif.-based You Walk Away, LLC, Del Mar, Calif.-based American Mitigation Group, Inc. and Monarch Beach, Calif.-based Foreclosure Relief Agency, LLC.

The Republican AG said his office proactively investigates foreclosure consultants to determine if they are operating in violation of Indiana law.

In addition to foreclosure consultant companies, the attorney general's office has identified reverse mortgage offers as a growing area for scams and recommends consumers be aware of the potential threat.

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