Minnesota Attorney General Keith Ellison announced a $240,000 settlement with Dwell Equities LLC related to compliance errors in the company’s foreclosure rescue services.
According to a statement from Ellison’s office, the Rochester, Minnesota-based Dwell approached individual homeowners in foreclosure and promised it could help the homeowners remain in their homes. However, Ellison’s office determined Dwell failed to comply with numerous legal requirements required of foreclosure rescue services, which left many of their customers in worse positions before the company approached them. Among Dwell’s compliance problems involved conducting business without written contracts that included notices of cancellation failing to provide homeowners with at least 82% of the fair market value of their property.
In the settlement, Dwell agreed to stop engaging or continuing a foreclosure rescue service or engage in equity stripping, or otherwise act as an “equity purchaser” to acquire homes in foreclosure. The financial aspect of the settlement will be used as compensation to the six affected homeowners and for the costs of the investigation in Dwell.
“I have no patience for any business that offers to help people who are struggling financially but actually put them in a worse situation,” said Ellison. “Everyone deserves to afford their lives and live with dignity, which is why my Office is putting money back in the pockets of people who were misled by Dwell.”
