NJ AG files foreclosure scam suits

October 21, 2008 5:25:54 AM PDT
New Jersey Attorney General Anne Milgram is going after mortgage scammers. She announced lawsuits yesterday against 37 mortgage loan providers and employees who allegedly used bogus "foreclosure rescue" schemes. She says they scam people by convincing cash-strapped homeowners to sign over their homes and promise them they can remain as renters until they get back on their feet financially.

They often end up taking people's money and forcing the homes into foreclosure instead.

The defendants are charged with consumer fraud and civil racketeering.

The two complaints allege the defendants victimized 48 homeowners in 14 counties.

Milgram says New Jersey's 34,457 foreclosures last year represent a 50 percent increase over 2006 and a 90 percent increase over 2005.

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