Zoeller files suit against foreclosure consultant

Keith Loria Dec. 9, 2010, 3:00pm


EVANSVILLE, Ind. (Legal Newsline) - Indiana Attorney General Greg Zoeller announced on Tuesday that he has filed a lawsuit against a foreclosure consultant that allegedly violated several state consumer protection laws.

The California-based Hope4Homes Inc., and owner Mahan Abbasi, have allegedly been operating in Indiana illegally.

The suit alleges that one Evansville resident lost $1,800 in a loan modification scam perpetrated by the company.

Harold and Sharon Matthews allegedly paid Hope4Homes to negotiate a home loan modification. The suit alleges that the couple was instructed by Hope4Homes to stop making payments on their mortgage while it negotiated a better loan.

This allegedly caused the Matthewses to fall three months behind on their payments. Until their involvement with the company, they had been current with their payments, they say.

Hope4Homes was unable to find them a new loan and,even though it advertised a "100 percent money back guarantee," it did not provide the couple with a refund, Zoeller claims.

"So called 'foreclosure consultants' are taking advantage of those who are facing desperate financial hardship and scamming them out of thousands of dollars when they are most vulnerable. They are operating illegally and this will not be tolerated in Indiana," Zoeller said.

"Working to protect Hoosier consumers includes bringing actions against those who violate our state laws and also warning people to protect themselves, their family and their neighbors."

According to state law, a foreclosure consultant or credit service organization must have a $25,000 surety bond registered with the attorney general's office before they can request any payment upfront or perform any services.

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