Joining in a national crackdown on mortgage fraud, the Illinois attorney general has announced lawsuits against three mortgage companies, two of them with offices in the Northwest suburbs, claiming the companies preyed on customers with financial difficulties.

Attorney General Lisa Madigan filed complaints this week in Cook County Circuit Court against Loan Mod One, LLC, which has offices in Las Vegas, Nev., and West Dundee; Freedom Mortgage Team, Inc., of Chicago; and Living Modifications Corp., of Schaumburg, and its owner, Tomasz Tomczyk.

In each suit, Madigan alleges the defendants ask for an upfront fee from distressed homeowners, promising to negotiate with mortgage lenders to reduce their payments and save their homes. However, the suits claim, the companies fail to negotiate or perform any services on behalf of the homeowners, leaving consumers at even greater risk of losing their homes to foreclosure.

Illinois' Mortgage Rescue Fraud Act prohibits companies from requiring upfront payment from consumers before completing all the terms of a mortgage rescue contract. The law also requires businesses to fully disclose to a homeowner the exact nature and terms of the proposed rescue services and the homeowner's right to cancel the contract, Madigan said.

The suits seek a permanent injunction barring the defendants from engaging in mortgage rescue operations in Illinois, ask for restitution to consumers and call for tens of thousands of dollars in civil penalties.

The lawsuits are part of a national focus on mortgage fraud by the Federal Trade Commission and the U.S. Department of Justice. Similar suits were filed in at least 19 other states this week in conjunction with the effort.

"With home foreclosure rates steadily on the rise, we are working closely with our federal partners to leverage all available resources to stop mortgage rescue fraud," Madigan said in a prepared statement. "Homeowners who believe they are at risk of losing their homes need to know that free, legitimate help is available."

She said homeowners in crisis can contact her office's Homeowner Helpline, 1-866-544-7151, or find resource materials at her Web site, illinoisattorneygeneral.gov.