MN Attorney General Expands Litigation Against Fraudulent Foreclosure Consultants

The Minnesota Attorney General, Lori Swanson, has issued a warning regarding mortgage modification scams and unscrupulous persons attempting to take advantage of people who are struggling to pay their home loans. See this link to see the Attorney General’s warning: http://www.ag.state.mn.us/Consumer/PressRelease/090129ForeclosureConsultants.asp

You need to be extremely careful in the event anyone approaches you regarding a loan modification process. Foreclosure consultants typically represent that they will save a homeowner’s home from foreclosure by negotiating or modifying the terms of the homeowner’s existing mortgage. 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.”

4 comments

#1Ed NelsonJune 3, 2009, 12:40 pm

Thanks for helping get the word out about the proliferation of scams in Minnesota!

Not only is the Attorney General’s office expanding their litigation of fraudulent “consultants”… the 2004 law preventing up-front fees was STRENGTHENED in this year’s legislative session!

For more info, see the MN Home Ownership Center’s newsletter here: http://bit.ly/w5GI9

#2Dean WilliamsJune 3, 2009, 6:46 pm

Foreclosure is every homeowner’s nightmare. The stress and worry of what to do and where to go once the house is gone, coupled with the embarrassment of foreclosure, are hard enough to send anyone into a panic. Screams have gone out in the deep of night dedicated to the horrors of foreclosure and its stigma of failure.

The situation is made worse by those who prey upon the weak, the defeated. Scammers have discovered the vulnerability of the homeowner in the midst of losing his home. Some such scams have caused homeowners who would have otherwise been able to survive the capsizing of their financial boat to lose much more than their homes.

There are several known foreclosure scams that can be devastating to the unsuspecting home owner already experiencing the deep pain of loss.

#3Property ManJune 8, 2009, 10:01 pm

This economy sure does bring the predators out of the woodwork doesn’t it?

Scams left and right. =(

#4mn first time home buyersJuly 31, 2009, 5:57 pm

It’s amazing to see the myriad schemes that are out there! And it is so sad to think that there are people that prey on others like this. Just all around sad!!

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