Cook County Recorder of Deeds Eugene Moore
Illinois Attorney General Lisa Madigan and Cook County Recorder of Deeds Eugene Moore are among the elected officials taking on mortgage rescue fraud, as many homeowners have fallen prey to it, sub prime loans and questionable refinancing practices. Madigan said Blacks and Latinos are often targeted for sub prime loans and questionable refinancing deals. She told the Defender that some companies are “unfairly and deceptively” getting people involved in mortgage rescue programs that that turn out to be costly scams.
“A lot of lenders have been targeting Black and Latino homeowners,” Madigan told the Defender. “That’s why my office will assist any potential homebuyer or homeowner with financing options. We provide counseling and will connect you with other organizations that can help.”
Sub prime loans and mortgage rescue schemes have contributed greatly to a spike in foreclosures in Illinois, according to the attorney general. She explained that some companies involved in helping homeowners deal with their mortgage issues ask for payments upfront.
“With home foreclosure rates steadily on the rise, we are working closely with our federal partners (Federal Trade Commission and the U.S. Justice Department) to leverage all available resources to stop mortgage rescue fraud,” Madigan said.
One red flag Madigan said homeowners should look for is when someone requires an upfront fee to work with you and your lender in reducing monthly mortgage payments.
The state recently passed a law that prohibits companies from requiring money upfront. A total of 131,132 foreclosure filings were reported in Illinois for 2009, which is an increase of nearly 32 percent over 2008, Madigan’s office reports.
On April 19 the attorney general’s offices on the South and West Sides will be open until 7 p.m. for homeowners wanting assistance with their mortgages.
Moore is also working to protect homeowners in Cook County, which leads the state in mortgage fraud cases, according to the attorney general.
He started a Mortgage Fraud Prevention Unit in November to assist homeowners with fraud. “We recognized it was going on all over the country so we decided to dedicate more resources to helping homeowners,” Aska Abdullah, a spokesman for the Cook County Recorder of Deeds’ office, told the Defender. “Homeowners can better protect themselves if they are aware of these scams.” Abdullah added that the Recorder of Deeds’ office would be participating in a Resource Fair sponsored by Ald. Pat Dowell (3rd) from 10 a.m. to 1 p.m. Saturday at Dawson Technical Institute of Kennedy-King College, 3901 S. State St.
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