Ind. sues foreclosure consultants, alleging scams

AP News
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Posted: Oct 21, 2010 2:05 PM
Ind. sues foreclosure consultants, alleging scams

Indiana's attorney general is suing 10 companies for allegedly taking advantage of homeowners who turned to them for help saving their homes from foreclosure.

Attorney General Greg Zoeller said Thursday the 10 for-profit companies describe themselves as "foreclosure consultants" but that they are operating illegally and scamming Indiana residents out of thousands of dollars.

He says the companies have made false advertising claims that include claiming they can save any home from foreclosure, and that their services are 100 percent guaranteed.

The 10 lawsuits were filed in nine different Indiana counties as part of an effort to alert consumers about the pitfalls of hiring for-profit foreclosure rescue companies.

So far this year, the state has sued or reached settlements with 27 such companies.