From AP - News Headlines -

Ill. AG Sues Companies Running Mortgage Scams

Illinois Attorney General Lisa Madigan filed lawsuits Tuesday against companies she says are running fraudulent mortgage rescue schemes.

Some Chicago area companies and licensed attorneys allegedly charged consumers as much as $375,000 to help homeowners avoid foreclosure. But Madigan said the companies took the money and never helped the consumers.

She said the 2006 Mortgage Rescue Fraud Act prevents companies from charging upfront fees, but lawyers are able to accept advance payment.

"The new twist on this scam is that these predators are really using lawyers as a front so that they can conceivably get around the law and collect the upfront money," Madigan said.

The Attorney General's office has filed suit against four companies accused of using this scam. The filing asks the court to shut down the businesses and get restitution for at least 76 consumers.

Madigan said homeowners should not have to pay to get help with their mortgage, and that HUD certified counselors are available for free. Homeowners can contact the Attorney General's Homeowner Helpline at (866) 544-7151.