Colo. AG battles foreclosure rescue fraud

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Today Colorado attorney general John Suthers took steps to prosecute those who might try to take advantage of homeowners in foreclosure.

The attorney general filed lawsuits against three businesses accused of defrauding homeowners in Denver, Boulder and Broomfield through “deceptive foreclosure rescue schemes.”

According to the complaints filed in Denver District Court:

“Consumers facing foreclosure were approached by the defendants with a proposal to save their homes.The defendants promised to use the equity in the homes to halt the foreclosures and, in some cases, to make improvements to the properties. Homeowners were instructed to transfer title to their properties to investors arranged by defendants, who would then lease the properties back to the original homeowner with an option to repurchase their homes. The complaints allege that many homeowners were subsequently evicted and that none of them were ever able to exercise their repurchase options. All of the equity in their homes was lost to the defendants.”