Industry News

State probes foreclosure rescue schemes

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The Massachusetts Attorney General's Office has obtained a preliminary injunction against 15 individuals and companies who allegedly participated in a mortgage fraud and foreclosure rescue scheme. The injunction prevents them from engaging in foreclosure rescue transactions, the office announced this week. Suffolk Superior Court Judge Allan van Gestel granted the injunction, which was requested by state Attorney General Martha Coakley. The injunction provides that the individuals and companies must cease to act as mortgage brokers, real estate brokers and closing attorneys relating to foreclosure rescue transactions in Massachusetts, and cannot "transfer assets while the case is pending; except for necessary living expenses and expenses in the ordinary course of business." The order also prohibits the alleged participants in the fraud scheme from "transferring, selling, mortgaging or encumbering any of the homes that have been subject to a foreclosure rescue transaction" that they alle...