Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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Home Foreclosure Solutions, 17550 South Williamsburg Drive, Plainfield, Ill;
Foreclosure Experts, 220 S. State Street, Chicago, Ill.
Mason Capital Group, 18375 Ventura Blvd., Tarzana, Ca.
StopMyForeclosure.net, 3914 Abbotsford Road, Rockford, Ill.
In each of the lawsuits, the Illinois Attorney General Madigan alleges that con artists targeted homeowners who have fallen behind on their mortgage payments and promised that for an upfront fee, the scammers could negotiate with the mortgage lenders to reduced the payments and save their homes. However, according to Madigan’s complaints, these “consultants” collected the upfront fees, they failed to negotiate or perform any services on behalf of the homeowners, leaving consumers at risk of losing their home to foreclosure.
This tactic violates Illinois’ Mortgage Rescue Fraud Act, which prohibits mortgage rescue companies from requiring payment from consumers prior to completing all the terms of a rescue contract. The law also requires rescue businesses to fully disclose homeowner the exact terms and nature of the proposed rescue services and the homeowner’s right to cancel the contract. With these new filings, Madigan has brought lawsuits against 22 mortgage rescue fraud companies.
In each suit, the Attorney General is seeking a permanent injunction preventing the defendants from engaging in mortgage rescue. Madigan is also asking the courts to award restitution to consumers and to order each defendant to pay a civil penalty of $50,000, additional penalties of $50,000 for each act committed with intent to defraud an additional $10,000 for each act committed against a senior citizen, and costs for investigation and prosecution of the cases.
Madigan urged consumers to use caution when seeking help if they are at risk of losing their homes and to seek reputable sources for assistance. “Consumers need to resist offers of a ‘rescue,’” Madigan said. “These scam artists prey on desperate homeowners who are struggling to save their homes. I urge consumer avoid ‘rescue’ offers and, instead, reach out to trusted sources for help. My office assists homeowners attempting to avoid foreclosure. Anyone looking for help should call us immediately.”
Homeowners Should Watch Out For “Title Taking” Schemes
As she urged homeowners to avoid falling prey to mortgage rescue fraud, Madigan the opportunity to outline one type of rescue fraud scheme. In “title taking” scheme con artists convince homeowners to sign over the title of their home. The original owners then make “rent payments” to the rescue fraud scammer based on the promise that the scam artist will sign the home back over to the original owner at a later date after the home value increases and/or the homeowner’s credit is repaired. Usually, con artist is long gone before the victim realizes they’ve lost both their home and the equity that they had established over the time that they owned the home.
“This is especially devastating to older homeowners who often have their entire life savings wrapped up in their home’s equity,” said Madigan.
Homeowners Should Make the Call To Find Reputable Help
Madigan reminded Illinoisans not to wait for a rescue fraud scheme to happen to them. “You do not have to be a victim,” she said. “There are a lot of reputable resources available, free of charge, and I urge homeowners to reach out for help.”
To prevent homeowners in crisis from losing their homes to foreclosure, Madigan urges them to immediately contact:
Attorney General Madigan’s Homeowners’ Referral Helpline at 1-866-544-7151 for guidance on avoiding mortgage foreclosure; A HUD-certified housing counselor for assistance in working out a solution with the lender (Madigan’s office can provide names and numbers for these counselors); and Their mortgage company, whose contact information is found on their month mortgage statement.
Madigan also directed homeowners to her Web site at http://www.IllinoisAttorneyGeneral.gov, to access her Mortgage Rescue Fraud Brochure and her Illinois Mortgage Lending Guide resource manual containing step-by-step instructions for those struggling to make loan payments and a list of HUD-certified counseling agencies that offer default counseling services. Homeowners who do not have easy access to the Internet should call the Attorney General’s Helpline, to quickly receive the guide or the brochure by mail.
Assistant Attorneys General Jennifer Franklin, Michelle Garcia, Junko Minami, Elizab Phalen, Rebecca Pruitt and Kimberly Slider are handling these cases for Attorney General Madigan’s Consumer Fraud Bureau.
I work for a bank that will modify a borr mortgage if they are having difficulty making payments. my adv to anyone having difficulty is to work directly with their bank. never ever work with a third party. believe it or not the bank wants to help you. feel free to email me with questions
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Defaulted Loans May Haunt Seniors On Line WSJ.Com
A little-noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.
Oregon to Help Homeowners Prevent Foreclosures CBS State
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Couple Loses $850,000 in Alleged Ponzi Scheme Boston Herald
Al and Susan McIlvene of Kittery Point, Maine, can remember the exact moment in November when they realized they might lose their entire life savings of $850,000, reports the Portsmouth Herald.
Mortgage Fraud Charges Filed Against Former Bakersfield Realtor, Her father KGET.Com
A former Bakersfield real estate agent and her father face 15 felony counts each of money laundering, conspiracy and grand theft in connection with an alleged multi-million dollar mortgage fraud scheme, newly filed court charges show.
Witness: Mortgage Name Not the Same Clarion Ledger
A former Clinton homeowner was called to testify Wednesday as prosecutors to try to prove a Ridgeland-based mortgage broker and two associates were behind a $9 million mortgage fraud scheme.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
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