REALTOR GETS NAILED ON MORTGAGE RESCUE SERVICE
Florida Attorney General Begins Enforcement of Mortgage Modification Firms
I just received an email from an ActiveRain Realtor member that stated basically the following:
"The Florida Attorney General office has set up "spot checkers" to find people/companies accepting up-front fees for negotiating loan modifications. When I was called, I answered yes to the question (do I get paid up front).
I had only 2 clients.
After what ended up being an interrogation, I agreed to refund the money of the 2 clients even though they never complained! I agreed to cease & desist for which there will be an agreement in writing. Here is the kicker - I have to pay a fine of $5,000 plus costs! A portion of the text of the Attorney General letter says, "As we discussed, you will be responsible for the attorneys fees and costs and investigative costs of this action. Our office will be seeking $15,000.00 as a stipulated payment with $10,000.00 of that amount being waived due to your refunds to the affected consumers. The remaining $5000.00 will need to be paid unless you can provide documentation of your inability to pay."
The message here is that the Economic Crimes Unit of the Attorney General is now actively investigating anyone undertaking activities that would come under the definition of Mortgage Foreclosure Consultant or activities that come under the umbrella of the Florida Fraud Prevention Rescue Act. I reported on the position of the Florida Bar in their Ethics Alert and now the matter was written up on the Daily Business Review at FORECLOSURES: STRICT RULES FOR LAWYERS.
EVERONE furnishing mortgage modification or foreclosure rescue services to Florida residents must be vigilant to the terms of this legislation!
Copyright 2009 Richard P. Zaretsky, Esq.
Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com. See our easy to find articles at Need Short Sale Information? - These Articles Probably Answer Your Question
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