Florida Foreclosure Fraud Law sees its first violator

Real Estate Agent with Sand Dollar Realty Group, Inc. BK627826

The Florida Foreclosure Fraud Law, Florida Statute 501.1377 that went into effect on 10/1/08 has now seen it first person being charged with a violation.  This particular firm was charged with getting homeowners in foreclosure to pay a $2500 upfront fee in an attempt to do loan modifications.  FMA Servicing which is based right here in Central Florida has been charged by the Florida Attorney General's office with violating this new law.  You can read more details on this in the Orlando Business Journal.


A similar incident happened to a local investment firm that I know just a few months ago.  The whole family was indicted under other laws for equity skimming, but the point is that the Florida Attorney General isn't kidding around.  These people are still awaiting trial.  Orlando Sentinel article.

I have been saying for several years now that the entire real estate and mortgage industry is being scrutinized by a giant microscope.  So please dot your I's and cross your T's.  If you aren't sure if you are playing by the rules, please have your lawyer examine what you are doing.  Now is not the time to be dancing around in "gray areas" of the law. 

When a group of us from Central Florida Realty Investors met with Attorney General Bill McCollum last Fall, he made it clear that he wanted this new law in place so that he can better pursue these bad apples.  So you don't want to be in his bullseye.  Remember to always follow the golden rule and have your attorney verify anything you are uncertain of.


(Copyright © 2009. Sand Dollar Realty Group, Inc. All rights reserved.)   Subscribe to my blog via RSS feed.

Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

ABR, CPL, CRB, CSP, GRI, Managing real estate broker, Notary Public

407-389-7318 / 1-877-389-7318 www.SDRhouses.com   We Buy Houses Florida

We sell foreclosures, short sales, and bank owned REO properties throughout Central Florida. We sell and list Central Florida real estate and Orlando real estate. Free list of foreclosure and short sale houses available.

I also provide flat fee MLS listings, For Sale By Owner, and menu-based services in most parts of Central & South Florida, the Space Coast, and the Treasure Coast including Orlando, Winter Park, Maitland, Ocoee, Winter Garden, Apopka, Altamonte Springs, Casselberry, Longwood, Winter Springs, Oviedo, Lake Mary, Sanford, Deltona, Debary, Deland, Mount Dora, Eustis, Clermont, Kissimmee, Winter Haven, Lakeland, Tampa, Sarasota, Bradenton, Miami-Dade, Fort Lauderdale, West Palm Beach, Port Saint Lucie, Melbourne, Daytona Beach, Ocala, Gainesville, Volusia, Brevard, and more.   


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Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

It is all about enforcement. There are so many laws on the books that don't ever get enforced.

Feb 21, 2009 02:01 AM #1
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Yee Haa!!! 

I love to read these accounts.  We don't see enough of them.


Feb 21, 2009 02:06 AM #2
Goodbye Active Rain
Out of Real Estate

I'm so glad they are hampering down on people.  If you are going to continue to do things unethically and violate the rules, you will pay the price.  There is no reason to not play the game correctly.  Thank you for the post!

Feb 21, 2009 03:10 AM #3
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Rob, I'm sure we'll be seeing a lot of this in the near future. There are a lot of scammers out there.  

Feb 21, 2009 10:29 AM #4
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

Excellent! I'm glad they got busted! It's despicable to try to take advantage of people who are already desperate. That money was probably desperately needed by that family!

Feb 23, 2009 02:12 AM #5
Eva Erdmann
Lion International Inc. - Holiday, FL
interior decorator

Finally something is being done about the scammers.

One of the victimes of similar scam.


Mar 18, 2009 11:20 PM #6
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Rob Arnold

Metro Orlando Full Service - Investor Friendly & F
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