Indianapolis - Vulnerable, confused and in need of help. That's how Indiana's Attorney General describes the victims of a suspected widespread mortgage fraud. The state is taking action against companies advertising financial help for those in need.
Five companies, five lawsuits. Indiana Attorney General Greg Zoeller filed suit in several central Indiana counties where a handful of out-of-state companies took money from Hoosiers, promising to stop their home from being foreclosed upon.
The investigation began with a consumer complaint.
"If they promise you can keep the home without ever having made an inquiry into your situation, that's beyond the pale," said Greg Zoeller, Indiana attorney general.
An in-depth investigation by the attorney general's office showed inconsistent, misleading action or little action at all. The red flag was this: none of the companies had a surety bond in place. That's a $25,000 bond that is meant to protect the consumer and required by state law.
That is the foothold for the lawsuits. But Zoeller is also troubled by the companies' predatory nature. Since foreclosure notices are public documents, he says these "foreclosure consultants" would swoop in with a simple phone call or even a knock at the door.
"It'll be this, almost as if there was an answer to a prayer, you have this problem, you're in a crisis, and suddenly someone shows up offering help," said Zoeller.
Read full story [Eyewitness News]
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