Carmel-based foreclosure consultant faces state lawsuit

INDIANAPOLIS (WISH) - A local business that took $1,200 from an out-of-state consumer and failed to provide a home-loan modification or refund is now facing a state lawsuit.

Indiana Attorney General Greg Zoeller said the lawsuit was filed against Statewide Federal Assistance Corporation headquartered in Carmel and its owner Ashley Grant.

The company collected money upfront from a Washington state resident and then failed to obtain the promised home-loan modification, according to a complaint.

"This is a unique and rare case because it involves an Indiana company taking advantage of an out-of-state homeowner - the opposite of what we regularly investigate," Zoeller said. "I believe that's because Hoosier hospitality is not extended to scammers and illegitimate businesses. This lawsuit highlights our ongoing mission to pursue those operating within the state's borders that intentionally deceive consumers."

According to the complaint, Statewide Federal Assistance Corporation, located at 387 Mallard Court, violated the Credit Services Organization Act, the Mortgage Rescue Protection Fraud Act, Home Loan Practices Act and Deceptive Consumer Sales Act.

They also failed to obtain a $25,000 surety bond with the Attorney General’s Office.

The state is seeking an injunction, restitution, investigative costs and civil penalties.

Since 2006, the Attorney General’s Office has filed 130 lawsuits against foreclosure consultant companies in more than 30 counties across the state.

Zoeller said this case represents one of only a few of those complaints filed against an Indiana-based foreclosure consultant. While no Indiana victims have come forward regarding Statewide Federal Assistance Corp., the Attorney General's Office has jurisdiction over the business as it is headquartered within the state.

Hoosiers should be aware that illegitimate companies advertise on the radio, Internet, over the phone of through direct mail and promise to “reduce your interest rates” or “stop foreclosure now”, Zoeller said.

Zoeller says these companies target vulnerable homeowners and obtain public foreclosure notices.

Victims pay upfront fees and see little or no progress in their loan. Homeowners are often left in worse financial shape.