Indiana targets foreclosure firms in lawsuit

Companies allegedly bilked customers out of money despite doing no work.

August 24, 2011

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(Getty/Scott Olson)
(Photo provided by Indiana Attorney General's office.)
Indiana Attorney General Greg Zoeller.

The Indiana Attorney General’s office is suing two firms for allegedly scamming homeowners out of money. The homeowners were trying to stave off losing their homes through foreclosure.  They turned to the companies, paying them up to $3,000 for help.

But help never came and neither did refunds, according to the lawsuit.

Indiana Attorney General Greg Zoeller filed the suit against the firms at the Porter County Court House in Valparaiso this morning.

“You know many consumers are desperate with either bad credit or they’re near foreclosure, and they see these offers as their last chance to improve their financial situation,” Zoeller said. “Despite very believable sales pitches, the services aren’t rendered and promises of refunds aren’t kept.“

In all, some 13 homeowners were allegedly targeted by the Community One Law Center of Boca Raton, Fla., or the National Law Partners of California.

One of the victims lived in Porter County, about an hour east of Chicago.

According to the suit, the companies are separate entities, but both worked interchangeably on files and shared employees. The amount the firms’ clients paid ranged from $500 to $2,700.  

Zoeller’s lawsuit seeks restitution and fines against the companies. He recommends homeowners seek foreclosure assistance from not-for-profit firms.

The firms could not be reached for comment.