A number of complaints from Indiana residents, including people who have lost their properties to Indianapolis foreclosures, led to the state formally filing a lawsuit against Daniel Shrader, an agent who works for several companies that offer help to troubled homeowners through foreclosure-related rescue programs.
According to reports, the Attorney General’s Homeowner Protection Unit has recorded more than 70 complaints against Shrader from homeowners who have sought help for their problems related to foreclosures in Indiana. Shrader allegedly worked for several companies, including Orion, Prizm Partners, Great Homes LLC, Regal Partners, Northstar Homes and an online resource that offers help to people facing foreclosure in the area, indy-housebuyers.com.
According to the residents who filed the complaints, Shrader and his companies took over residential properties but did not pay mortgages. The agent also allegedly did not follow state rules that govern services provided to homeowners who are trying to find ways to prevent their homes from being foreclosed and from being converted into bank REO properties for sale.
Government lawyers in the state have stated that the case is a consumer issue that merits serious attention, particularly as the area has been suffering from an onslaught of housing problems, including Fannie Mae foreclosures. They further added that a lot of homeowners are getting caught in foreclosure-related situations and have become desperate, leading them to seek help from just anyone. As a result of the complaints, a judge of Hamilton County has ordered the agent to pay for delinquent loans for one of his clients.
Reports also revealed that Shrader had to be tracked down by state investigators to serve the lawsuit that seeks an injunction against the agent’s businesses. Homeowners who have lost their properties to Indianapolis foreclosures and other state residents who also sought the help of Shrader through one of his companies had weighed in on the issue, putting the concern of fraudulent operations concerning foreclosure help efforts at the forefront of the state’s housing problems.
Local officials have warned state homeowners, including those who have lost their homes through bank foreclosures, Freddie Mac foreclosures and other types of homeownership troubles, not to trust just anyone claiming to be a foreclosure consultant. They stated that residents should make sure that consultants have at least a $25,000 bond and that the consultant has no personal financial interest on the property in question. Legitimate consultants should also tell homeowners their rights before taking in the job and should let them know that there are companies that offer the same service for free all around the state.
Attorneys of the state have also emphasized the need for homeowners to consult lawyers first before hiring a foreclosure consultant and to read documents carefully before signing them. They warned that the case involving Shrader is just one of the few that they are looking into.
Shrader has not made any comment so far on the state’s lawsuit. Meanwhile the state’s Attorney General’s Office had revealed that they have at least nine ongoing investigations covering operations that offer consultancy services to homeowners in the state, including those facing Indianapolis foreclosures.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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