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We missed this back in October 2008.

In the following To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. Cook County (IL) State’s Attorney Richard A. Devine, filed a lawsuit against a foreclosure rescue company for allegedly duping a south suburban resident into selling her home to the company in violation of the Illinois Mortgage Rescue Fraud Act.

The lawsuit was filed against BRD Development, LLC; Christopher McGruder, its owner and operator; The Loan Professionals, Inc.; and Elizabeth Thompson, its owner and operator. The suit alleges that Christopher McGruder and Elizabeth Thompson participated in a fraudulent scheme to convince a homeowner to sell her home to McGruder to prevent its loss from a pending foreclosure. They also falsely promised to qualify the victim for a loan to repurchase her home at a later date.

The lawsuit further alleges that the Defendants misrepresented the costs and expenses of McGruder’s purchase of the home and that McGruder fraudulently obtained all of the equity in the victim’s former home. Also, the sale of the home allegedly did not comply with the provisions of the Mortgage Rescue Fraud Act regarding contract and payment terms, notices, a right of cancellation, and recordation of the sales contract.

In January 2007, the Mortgage Rescue Fraud Act became effective in Illinois. The purpose of the Act is to protect persons who are at risk of losing their homes because of foreclosure or non-payment of property taxes. The Act imposes numerous requirements on “Distressed Property Consultants” and “Distressed Property Purchasers.” “Distressed Property Consultants” obtain fees from distressed property owners to gain additional time and possibly save their homes by negotiating a deal with the lender.

“Distressed Property Purchasers” purchase distressed properties and provide the former homeowners with an option to purchase and leaseback. The Act also provides for civil and criminal penalties for any party who violates the Act.

The lawsuit seeks to permanently bar the Defendants from engaging in any further alleged deceptive practices. A refund for the victim and a $50,000 civil penalty for each defendant are also being sought.

“All too often, Distressed Property Consultants offer very little help to a homeowner in foreclosure, and an attorney or reputable non-profit housing counselor can provide better and more economical services,” said Richard A. Devine, Cook County State’s Attorney. “The option to repurchase the home offered by many Distressed Property Purchasers is deceptive, because most persons who agree to a sale with an option to purchase and leaseback will lose their homes and pay exorbitant fees for an option that they will never be able to exercise.”

The State’s Attorney’s Consumer Fraud Division has compiled an To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. to alert consumers about Mortgage Rescue Fraud.

If you believe that you have been the victim of Mortgage Rescue Fraud or would like a copy of the information sheet, please, contact the Cook County State’s Attorney’s Office, Consumer Fraud Division at 312/603-8700. Spanish speaking services are available.

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