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California attorney general seeks to deter foreclosure scams

June 1, 2009 |  7:17 pm

Foreclosure consultants throughout California now must register with the state and post $100,000 bond by July 1, Atty. Gen. Jerry Brown decreed Monday, part of his campaign to deter scams that bilk homeowners of massive upfront costs while seldom saving their homes.

"California is awash with con artists who prey on vulnerable families facing foreclosure," Brown said. "By forcing foreclosure consultants to submit detailed information to my office and post a $100,000 bond, this registry will help bring long-overdue transparency to this shadowy world."

Brown last month brought charges against a foreclosure consultant who directed clients to pay into her personal bank account funds they thought were going toward their mortgage lenders. He has also warned homeowners against paying purported consultants for assistance that is available for free from state and federal agencies.

-- Carol J. Williams

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