Attorney General Ellison obtains compensation from Rochester company for homeowners who lost their equity when in foreclosure

(ABC 6 News) — Minnesota Attorney General Keith Ellison announced today that his Office has reached a settlement with Rochester-based Dwell Equities, LLC (Dwell) over the company’s failure to comply with legal requirements for foreclosure rescue services.

These failures included not providing homeowners with a portion of the equity in their homes. In the settlement, Dwell agreed to pay almost $240,000 to close the AG’s investigation and cease engaging in their foreclosure rescue services.

Between 2022 and 2023, the Minnesota Attorney General’s Office (AGO) received complaints regarding the Rochester-based real-estate corporation’s foreclosure rescue services.

The AGO’s investigation showed that Dwell approached individual homeowners in foreclosure and made promises that it could help those homeowners stay in their homes.

Dwell had advertised that it “specializes in helping people with potential foreclosure scenarios.” It stated that “one of [its] main missions is to work with the property owner in the foreclosure situation to assist in either finding a solution for the homeowner to stay in the property (if desired),” according to a press release from Ellison’s office.

However, the AGO’s investigation revealed that Dwell did not comply with numerous legal requirements when engaging in foreclosure rescue services and that many of their customers were left in worse positions than before the company approached them.

These requirements, specified in Minnesota Statutes chapter 325N, exist to protect homeowners in foreclosure from companies seeking to exploit people in financial difficulty.

For example, Dwell failed to conduct an ability to repay analysis, a process that helps protect homeowners from agreeing to foreclosure rescue terms they cannot fulfill. Dwell also did not conduct business using written contracts that included notices of cancellation, and Dwell did not provide homeowners with at least 82% of the fair market value of their property, as required by law.

In the final settlement, Dwell agrees 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. Additionally, Dwell will pay the State $239,150.44 to be used as compensation to the six affected homeowners and for the costs of the AGO’s investigation.

“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 Attorney General Ellison via the press release. “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.”

Attorney General Ellison encourages Minnesotans to submit complaints about predatory practices in the real estate industry by using a form on the Attorney General’s website. Minnesotans can also call the Office at (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).