Indiana AG sues foreclosure consultants

by Ryan Smith04 Feb 2014
The Indiana attorney general has filed suit against three foreclosure consulting companies accused of scamming homeowners in the state.

Indiana Attorney General Greg Zoeller has filed suit against Mortgage Auditing Solutions and Federal Loan Modification Law Center, LLP, both of California, and Mortgage Solutions Clearing House, Inc., of Florida.

“Homeowners who are struggling to pay their mortgage along with higher heating bills need to know that illegitimate foreclosure consultants may target you with empty promises of saving your home,” Zoeller said. “My office’s Homeowner Protection Unit continues to diligently pursue these types of businesses and use all available resources to obtain restitution for victims who are already in difficult financial situations.”

Mortgage Auditing Solutions is alleged to have entered into a contract to lower a Fort Wayne, Ind., resident’s mortgage payment, then absconding with a $495 upfront fee. Federal Loan Modification Law Center and Mortgage Solutions Clearing House, meanwhile, are accused of collecting a total of $1,995 from two victims and failing to deliver on the promised loan modifications. None of the companies registered the $25,000 surety bond required in the state of Indiana before services can be performed or fees collected.

Zoeller is seeking injunctions against all three companies, as well as restitution for the victims, civil penalties and reimbursement of investigative costs.


  • by Michael H | 2/4/2014 11:33:09 AM

    Going after the BIG GUNS here...


Is TILA-RESPA a good or bad thing long term?