Illinois Files Lawsuits Against 7 Mortgage Rescue Companies

Chicago, IL (AHN) - As home foreclosures peaked at 31 percent in October for Illinois, the state had to double its efforts to prevent troubled home owners from being victimized by mortgage rescue companies preying on hapless residents.

State Attorney General Lisa Madigan filed seven more lawsuits against companies that promise to provide mortgage relief to homeowners who have fallen behind their monthly payments. With the seven new cases, Illinois has 22 pending lawsuits against mortgage rescue firms.

Madigan filed the seven lawsuits in Cook, Sangamon and Winnebago counties. Providing mortgage relief advice is available from a number of state and federal agencies, the attorney general pointed out. She added state laws prohibit mortgage rescue companies from requiring homeowners to pay an upfront fee for the consultancy services they offer.

According to RealtyTrac, 12,681 Illinois residents received a foreclosure notice in October, including default notices, auction sale notices and bank repossessions. Over 50 percent of the notices were served in Cook County.

Illinois' 31 percent rise in foreclosures is higher than the national average which went up 25 percent to almost 280,000 homes that got notices in October.