Industry News

Illinois mortgage companies hit with fraud suits

Firms accused of mortgage rescue scams

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Illinois' attorney general Monday announced two lawsuits against companies accused of taking homes from homeowners facing foreclosure. Calling mortgage fraud "a cancer that is eating away at our neighborhoods," Attorney General Lisa Madigan announced the lawsuits Monday. The attorney general charged that a Chicago company, Advantage Mortgage Consulting, promised to help two Chicago homeowners with their financial troubles but instead duped them out of property worth $469,000. The attorney general also filed suit against a North Carolina company, HomeSavers USA Inc., and its CEO, David Moakler, alleging that they charged between $350 and $900 for helping to negotiate with lenders, but performed few, if any, services. Madigan's efforts join those of the legislature to combat this type of mortgage fraud. Chicago state lawmakers this month introduced a bill aimed at so-called "mortgage rescuers"--con artists who promise to bail out cash-strapped families but often end up taking their hom...