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Indiana Fines Mortgage "Rescue" Firm

May 15, 2006

Mortgage "Rescuers" • Florida Attorney General Warns Big Banks On Modifications • Ohio Sues Mortgage Servicer For 'Incompetence' • Brown Challenges Banks On 'New Wave' Of Foreclosures • California Law Cracks Down On Foreclosure Rescue • Feds And States Get Tough On Scams • FTC Continues Crackdown On Mortgage Relief Scams • Florida Sues Foreclosure "Rescuer" Targeting Hispanics for Fraud • Class Action Proceeds Against Debt-Relief Scam • States Increase Pressure On Foreclosure Consultants • New York Sues Loan Modification Company • California Puts Foreclosure Consultants On Notice • Mortgage Modification Program Off To Slow Start • Florida Sues Four Foreclosure Rescuers • California Sues Dozens Of Mortgage Rescue Scammers • Don't Put Your Hopes, Or Money, In A Loan Modification • Ohio Launches Foreclosure Rescue Crackdown • Feds Look at Tougher Foreclosure 'Rescue' Rules • California Seeks To Register Foreclosure "Consultants" • FTC Slams Fake Government Loan Rescue Operation • Ohio Puts Heat on Foreclosure Rescue Operations • California Foreclosure ‘Rescue’ Defendants Rounded Up • Missouri Joins Mortgage Scam Smackdown • Florida Targets Fraudulent Foreclosure "Rescue" • Florida Foreclosure "Rescue" Company Shut Down • Illinois Sues Seven Companies for Mortgage Rescue Fraud • California Busts Foreclosure Scam Ring • Florida Sues Foreclosure Rescue Company for Deceptive Practices • Mortgage Rescue Fraud Schemes On The Rise • Indiana Charges Mortgage Broker With Scamming Homeowners • Indiana Targets "Foreclosure Consultant" • Missouri Attorney General Takes on Foreclosure Scams • New Washington Law Protects Distressed Home Sellers • Foreclosure 'Rescue' Firm To Pay $1.2 Million To Arizona Victims • Florida Governor Signs Foreclosure Rescue Law • California Busts 'Land Grant' Foreclosure Scam Artists • California Shuts Down Mortgage Scam Artists • FTC Takes On Mortgage 'Rescue' Operations • Illinois Uses New Law to Sue Mortgage Rescue Company • Washington State Settles with Mortgage "Rescuers" • Scams and Foreclosures On the Rise • Illinois Sues Mortgage "Rescue" Companies • Mortgage Crisis? Act Now to Avoid Foreclosure • North Carolina Shuts Down Mortgage "Rescue" Operation • Illinois Shuts Down Mortgage "Rescue" Scam • Indiana Fines Mortgage "Rescue" Firm • Illinois Sues Another Mortgage Foreclosure "Rescuer" • Missouri Sues Foreclosure "Rescue" Business • Illinois Launches Offensive Against Foreclosure "Rescuers" • New York Takes On Predatory Real Estate Scams • Texas Halts Bogus Foreclosure Rescue Operation

Indiana is the latest state to clamp down on so-called mortgage rescue firms. At the request of the Indiana Attorney General's Office, a judge has ordered an Indianapolis company to make refunds to three consumers.

Karen Reinisch and her business "My House Saver, LLC" entered into contracts with consumers to assist them in securing deferred debt payments but failed to comply with various laws governing such practices, according to Attorney General Stave Carter.

"There are certain requirements that must be met for companies to act as a credit service organization or foreclosure consultant," Carter said.

"Since Indiana ranks among the highest in the country with respect to home foreclosures, it's important that we don't allow fly by night companies to take advantage of people who are facing the possibility of losing their home."

Reinisch and My House Saver acted as a Credit Service Organization but failed to meet the legal requirements of such a company.

Reinisch contracted with consumers who were in danger of mortgage foreclosure by telling them she would negotiate with the mortgage company to implement a plan that would prevent foreclosure.

Reinisch claimed she would establish "work out" plans with the mortgage companies which would defer or lower mortgage payments for the consumer.

Reinisch told consumers she would try to obtain financing through other lenders if a "work out" plan could not be established. Reinisch also promised consumers if she was unable to obtain other forms of financing, she would buy the house and re-sell it to the consumer on an installment contract basis.

All three consumers who filed complaints with the attorney general's office never received a "work out" plan or new financing and all eventually lost their homes to foreclosure.

Carter says Reinisch and My House Saver violated Indiana's Credit Service Organization Act and Indiana's Deceptive Consumer Sales Act by:

• Failing to obtain a surety bond in the amount of $10,000 prior to doing business as a Credit Service Organization;
• Failing to complete performance of services before receiving payments from consumers;
• Failing to provide consumers with a written contract detailing provisions of services and notice of cancellation;
• Representing she could perform services of a loan broker without obtaining the proper licensing;
• Intentionally and knowingly committing deceptive acts.

The court ordered Reinisch and My House Saver to make consumer restitution of nearly $3,000 for the fees consumers paid as well as pay more than $82,000 in costs and penalties.

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