Minnesota Attorney General Lori Swanson filed lawsuits against two mortgage foreclosure consulting firms that allegedly charged homeowners on the verge of foreclosure exorbitant upfront fees and then didn’t keep its promises to save their homes.

The suits were filed against IMC Financial Services and American Financial Corp., which does business as National Foreclosure Counseling Services. Both companies have offices in Florida.
According to the attorney general, the companies charged fees as high as $1,850.
Swanson said in a statement, “These foreclosure consultants exchanged the hard-earned money of desperate homeowners for empty promises. Nobody should ever pay money in advance to a company promising to save their home from foreclosure.”
Minnesota law prohibits foreclosure consulting companies from charging for services until after the company has performed the services it said it would.
The two companies could not be reached for comment after business hours Friday.