Florida Foreclosure Rescuer Faces Suit In Indiana

While there is some thought that foreclosures may have peaked, it's apparent that there are still plenty of homeowners under pressure, who sometimes fall victim to foreclosure “rescuers.”

Indiana Attorney General Greg Zoeller has filed suit against Legal Home Loan Solutions, a for-profit Florida foreclosure consultant company that he says operated illegally in 15 Indiana counties and failed to provide refunds to customers after services were not provided.

"Foreclosure consultant scams prey on those who are desperately looking for help to save their homes,” Zoeller said. “These scams also rob the homeowners of the opportunity to receive legitimate housing services from not-for-profit alternatives."

Zoeller said he wants to make the public aware of these frauds and provide information about the help that is available.

In addition to Legal Home Loan Solutions, three other entities were named as defendants in this case: Federal Home Loan Solutions, Matevia Law Firm and Thomas C. Matevia, the owner of all three companies, also have been named in the lawsuit.

Advance fees will get you every time

Zoeller said Legal Home Loan Solutions violated Indiana's consumer protection laws when it collected thousands of dollars from Indiana homeowners before performing any services. Indiana law requires credit service organizations and foreclosure consultants to register a $25,000 surety bond with the Attorney General's Office prior to performing any services as a foreclosure consultant, including collecting money upfront. The bond acts as an insurance policy for consumers in the event the company fails to perform the services and does not provide a refund.

The suit claims the company also committed other violations of the Credit Services Organization Act, the Mortgage Rescue Protection Act and Deceptive Consumer Sales Act, by failing to provide the homeowner with notice of various legal rights or of the availability of nonprofit credit counseling, among other things.

The lawsuit lists 21 other victims located in Allen, Cass, Clark, Elkhart, Floyd, Grant, Hamilton, Hendricks, Lake, Marion, Monroe, Porter, Steuben, St. Joseph and Tippecanoe counties.