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State Cracks Down on Foreclosure Protection Claims

Hoosiers are accusing foreclosure consultants of ripping them off.  State officials say some consulting companies have been advertising that every home can be saved from foreclosure but cannot deliver on that promise. 27 lawsuits have been filed against 10 consulting companies who claim their services are 100% guaranteed.  Deputy Attorney General David Miller says homeowners have lost thousands of dollars and these companies have broken a number of state laws.

“Individuals spent almost $7000 that was transmitted for four different properties that they were having difficulty maintaining the payments,” Miller said.  “The result was, the only mitigation that really happened was mitigating the bank account of our consumers.”

Miller said hundreds of thousands of dollars are at stake.

“We’ve identified more than 150 consumers. We have several cases still under investigation besides the ones that we’ve filed. And we’re talking about several hundreds of thousands of dollars.”

Miller explains that to do this type of work, these companies must have a bond with the Attorney General.  He urges residents to contact Greg Zoeller’s office before hiring consultants.

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