Attorney General Goes After Mortgage Predators

Two lawsuit were filed on Monday against companies accused of taking money and homes from vulnerable borrowers. The first company, Chicago based Advantage Mortgage Consulting, duped two South Side homeowners out of a collective $469,000 while promising to help them with their financial troubles. North Carolina company HomeSavers USA Inc., was also sued due to allegations that they charged between $350 and $900 for helping to “negotiate” with lenders while delivering few of the promised services.

The growing trend of mortgage fraud that cheats lenders, robs vulnerable people and drags down whole neighborhoods is the latest move by Madigan’s campaign. More than a dozen consumer activists, state lawmakers and fraud victims flanked the Attorney General at a conference where Madigan asked for action now against the stem of the problem. The request included crimes known as “rescue” fraud, where firms promise help to borrowers in financial trouble, then use the information they gained and the financial assistance offered to take control of their homes.