The State of Florida Mortgage Frauds on the Rise: Fraudulent Loan Modification Companies
Florida mortgage frauds are an epidemic and are on the rise while vulnerable homeowner's that are being subjugated by up front fees are increasing in numbers as loan modification companies are making false statements and services for services not yet completed.
The State of Florida was ranked #2 in foreclosures with 245,000 foreclosed homes in 2007 alone while it was ranked the highest in mortgage fraud. In the meantime, unscrupulous scam artists encumbered vulnerable homeowners into deceptive ‘foreclosure avoidance' by charging illegal up front fees, an act punishable by law according to Florida Statutes s.501.1377.
More than *50% of homeowner's who are or think they will be behind on their mortgage payments fail to contact their lender directly and feel that they need to contact a third party to rescue them of their defaulted mortgage payments, according to the Office of the Attorney General's website in Florida.
Homeowner's that are facing difficulties in making their mortgage payments are encouraged to contact their primary lender before contacting any ‘mortgage rescue companies' who claim that they can stop foreclosure or modify their mortgage by paying up front fees until services have been rendered from such acclaimed mortgage rescue companies. Your lender may be able to help you at no charge and have workout options to help you save your home.
But, if you feel that you have already fallen prey and have been victimized and scammed by a disreputable mortgage loan modification company, you may file a complaint by calling 1-866-9-NO SCAM or go to www.myfloridalegal.com
The following are current Florida investigations with accusations by the Office of The Attorney General in the State of Florida from companies that are being investigated in various cities of Florida by the Economic Crimes Division.
"Giving appearances that they provide federal government funds"
"Unfair and deceptive trade practices (most common complaint)"
"Utilizing client contract not in compliance with Florida Statutes s.501.1377"
"Collecting up-front fees from homeowners facing foreclosures s.501.1377"
"Continuing monthly withdrawals from consumer's bank account from collecting up-front fees and claiming to be a non-profit organization"
"Charging up front fees with a lawyer referral for loan modifications"
"Loan Modification Company operating under a fictitious name: (Fictitious Name Registration Act 865.09 FS.)
"Misrepresentation in deal documents"
"Using form contracts that do not appear to comply with disclosure and refund requirements"
"Soliciting and securing fees prior to completion of services in violation with s. 501.1377"
"Failure to perform services"
"Unlicensed practice of law"
"Unethical lawyer referrals in violation of Florida Bar Rules"
"Making performance guarantee, which guarantees actions of third parties that cannot be guaranteed"
"Overstating success rate, excessive fees F.S. Chapter 817 Part IV - Excessive Fees for debt management services"
"Deception to avoid invocation of due on sale clauses"
"Misrepresenting relationships with lenders"
"Falsely advertising the presence of an attorney "
Consumer awareness and education is a prevalent key to preventing a homeowner's dream into a nightmare. Help spread the word.
Consumer Resources:
Florida Statues s.501.1377 What you need to and should know about your rights as a homeowner seeking mortgage loan relief.
It is highly advisable that you hire an attorney before signing any documents regarding your mortgage loan:
Florida Bar Lawyer Referral Service 1-800-342-8060 http://www.floridabar.org
If you are not able to afford an attorney, a HUD representative may help assist and direct you to the program(s) best suitable and available for you.
Go to the HUD website for additional information concerning mortgages or the Housing Counseling Agency to help you find a HUD approved housing counselor nearest you. 1-800-569-4287.
*Florida Avoidance Research by Freddie Mac
Florida Foreclosure Avoidance Counselor Agencies
Protect Yourself and Your Home! Tips on Avoiding Mortgage Foreclosure
Mortgage Fraud Blog by Rachel Dollar - Ms. Rachel Dollar is an attorney, certified Mortgage Banker, and a nationally recognized speaker on mortgage fraud, and handles fraud recovery litigation for lenders and secondary market investors nationwide.
Related ActiveRain Blog by Christopher and Natascha Tello of Pembroke Pines, Florida
Two Large South Florida Loan Modification Companies Have Been Closed Down by the Attorney General's Office
The above defendant accusations are presumed innocent until and unless proven guilty.
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How can somebody promise loan modification in this market. It would be an out and out lie. There are too many variables.
1. Wholesale Pricing -- At $600 per file for the first mortgage and $300 for the second mortgage our fee is second to none in the industry. You will be hard pressed to find any other wholesale modification company to offer the same expertise and customer service level that we offer. Because we focus only on processing loan modifications and not selling them, your files will always receive the personal attention that they deserve.
2. State-of-the-Art Web Based Portal -- We have spared no expense in creating a secure and easy to use affiliate portal from the ground up. From inside our portal you will be able to pre-qualify, upload documents, print out real time reports, receive automatic email notifications, and track your customer files in real time. You can also start a dialogue with our team of negotiators and processors on each of your clients files so you are never left in the dark.
3. Top Notch Negotiators & Processors -- At Loan Restructuring Solutions our team of negotiators are hand picked right out of some the largest bank workout departments. Who better to process and negotiate your clients loan modification than actual former negotiators from the bank workout departments, these are the same people who you would need to talk to at the bank in order to get a loan successful modification, now they work for us. We do not use attorneys, or ex-collectors, who we feel in fact does not help your clients chances of getting a successful modification. Why would you want to put the banks on the defensive when asking them to help your clients?
4. Money-back Guarantee -- At Loan Restructuring Solutions we offer a 100% money-back guarantee in writing. Therefore it is in our best interest to get a successful modification for your client, if not, we do not get paid one cent. So you can rest assured that if we guarantee a file it has a excellent chance of approval. Presently we have a 98% success rate on files that we guarantee. Hey! No one is perfect! But we are trying!
5. Customer Service -- From the first day that you become one of our affiliates we will roll out the red carpet for you. You will be assigned your own personal Account Executive to handle any and all questions you may have. If by chance you are unable to reach your account executive immediately, your call will automatically rolled over to one of our Sales Managers who can also help you with any questions and concern that you may have. When you call you will always be able to speak with a live person not just an answering machine, at Loan Restructuring Solutions apart from getting successful modifications for your clients, customer service is one of our top priorities,
If you would like any further information about our service please call or email me back at the number and email address below. We look forward to doing business with you in the near future
Account Executive