Attorney General files suits against out-of-state mortgage consultants

House for sale in St. Paul
A St. Paul home on the market.
MPR Photo/Mark Zdechlik

Minnesota Attorney General Lori Swanson filed two separate lawsuits Thursday against out-of-state mortgage consultants. Swanson says the companies took advantage of homeowners facing foreclosure by charging them for services they didn't receive.

"Both companies charged consumers up-front fees ranging between $1,200 and $1,395 promising to save their homes from foreclosure," Swanson says. "After taking the homeowners money, however, that was the last time homeowners heard from the company. The companies took their money and then failed to deliver."

A 3 year old state law allows mortgage foreclosure consultants to charge fees only after they've performed services that could stop or postpone foreclosure.

The lawsuits also allege deceptive practices, consumer fraud and false advertising. Swanson is seeking restitution and civil penalties.

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