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

Mortgage Borrower's Rights

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.

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The above defendant accusations are presumed innocent until and unless proven guilty.