Minnesota Attorney General Lori Swanson has filed suit against two Florida based “Foreclosure Assistance” companies for taking consumers money and then not delivering anything at all.
Strib’s Jim Buchta reports:
“Swanson alleged that IMC Financial Services and American Financial Corp., which is doing business as National Foreclosure Counseling Services (NFC), violated Minnesota law by charging upfront fees of as much as $1,850 to renegotiate mortgage terms and not doing so.”
“A Minnesota law enacted in 2004 said that such foreclosure consultants may not accept payments until they have “fully performed each and every service the foreclosure consultant contracted to perform, or represented he or she would perform.”
There is more, but this part is another for the amazing but not surprising tag:
“many of the offers are being made by the same people who were selling risky mortgages four to five years ago.”
What an amazing business model! Put people into doomed-to-fail loans, then, when that is no longer possible, you can back solicit all of your past
clients victims. Rinse, Repeat.
And also, for the homeowners out there: The only party who can work out your loan with you is your mortgage servicer. If you feel compelled to dish out money to have someone represent your interests, please hire a real attorney (not one at the head of a network of former sub-prime goofs) to do so.