Attorney General Sues Mortgage Rescue Firms

Illinois Attorney General Lisa Madigan is warning struggling homeowners about mortgage rescue companies.

Madigan on Tuesday announced that she's filed seven new lawsuits against businesses she says offered false hope to homeowners trying to keep their homes. She's now filed 22 lawsuits against such companies.

The latest lawsuits were filed in Cook, Sangamon and Winnebago counties. They target mortgage "consultants" who got paid upfront but allegedly didn't help homeowners.

It's illegal in Illinois for mortgage rescue companies to require homeowners to pay upfront. In fact, homeowners can get help for free from a variety of agencies.

Madigan says struggling homeowners should call their lenders, reach out to a HUD-certified housing counselor or call her office for help.