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Saturday, September 21, 2024

Minnesota AG settles with real estate firm over foreclosure rescue violations

State AG
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Attorney General Keith Ellison | Official U.S. House headshot

Minnesota Attorney General Keith Ellison announced today that his office has reached a settlement with Dwell Equities, LLC (Dwell) over the company’s failure to comply with legal requirements for foreclosure rescue services. In the settlement, Dwell agreed to pay almost $240,000 and cease engaging in their foreclosure rescue services.

Between 2022 and 2023, the Minnesota Attorney General’s Office (AGO) received complaints regarding the Rochester-based real estate corporation’s foreclosure rescue services. The AGO’s investigation revealed that Dwell approached individual homeowners in foreclosure and made promises to help them stay in their homes. Dwell had advertised that it “specializes in helping people with potential foreclosure scenarios” and aimed to assist property owners in finding solutions to remain in their homes if desired.

However, the AGO found that Dwell did not comply with numerous legal requirements when providing these services, leaving many customers worse off than before. These requirements, specified in Minnesota Statutes chapter 325N, are designed to protect homeowners from exploitation during financial difficulties. For instance, Dwell failed to conduct an ability-to-repay analysis and did not use written contracts that included notices of cancellation. Additionally, Dwell did not provide homeowners with at least 82% of the fair market value of their property as required by law.

In the final settlement, Dwell agrees to stop engaging or continuing any foreclosure rescue service or equity stripping activities and will no longer act as an “equity purchaser” acquiring homes in foreclosure. Furthermore, Dwell will pay $239,150.44 to compensate six affected homeowners and cover the costs of the AGO’s investigation.

“I have no patience for any business that offers to help people who are struggling financially but actually put them in a worse situation,” said Attorney General Ellison. “Everyone deserves to afford their lives and live with dignity, which is why my office is putting money back in the pockets of people who were misled by Dwell.”

Attorney General Ellison encourages Minnesotans to submit complaints about predatory practices in the real estate industry through a form on the Attorney General’s website or by calling (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).

The Official Website of Office of Minnesota Attorney General Keith Ellison

445 Minnesota Street, Suite 1400, St. Paul, MN 55101

(651) 296-3353 (Twin Cities Calling Area) • (800) 657-3787 (Outside the Twin Cities)

(800) 627-3529 (Minnesota Relay)

The Minnesota Attorney General's Office values diversity and is an equal opportunity employer.

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