Florida sues foreclosure rescue firm
Real estate brief
By Inman News, Friday, October 17, 2008.More than 600 Florida homeowners are believed to have signed up for a foreclosure rescue scheme offered by a company that allegedly advised them not to make mortgage payments to their lenders and instead pay the company about 60 percent of their monthly payments instead.
The Florida Attorney General's Office has sued Outreach Housing LLC, claiming the company didn't work with lenders to reduce clients' mortgage debt as promised. Owners Blair L. Wright and Bryan E. Berry are named in the deceptive practices suit, which stems from an investigation by the attorney general's Mortgage Fraud Task Force.
The lawsuit seeks consumer restitution and civil penalties of $10,000 per violation of Florida’s Deceptive and Unfair Trade Practices Act. The Attorney General's Office says it has also asked the court to prohibit the defendants from engaging in any business activity related to the residential and commercial real estate business, including mortgage financing, sales and or brokerage.
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Submitted by Steve Simon on October 17, 2008 - 10:52am.
They should prosecute these SOB's to the fullest extent of the law, period...
If the answer to a complex problem is very simple, it is usually incomplete...
Steve Simon is the lead instructor at the Steve Simon School of Real Estate www.stevesimon.us
Submitted by Joanie Miller on October 17, 2008 - 2:26pm.
Wow, I can't believe it's only $10,000 per violation... Those poor homeowners.
Joanie Miller
Panama City Homes For Sale
Submitted by Phillip Jones on October 17, 2008 - 2:26pm.
I'm SO glad to see this! I hope they nail them to the wall!
There are so many of these types of unlicensed businesses now. It's very sad how they prey on the public and steal the equity of the homeowners. Many of the companies I've observed have the owner sign a quit claim deed in exchange for a nominal fee, the deed is then recorded at the clerk of court.
Then the company rents the property back to the owner or to another party while marketing the home for sale. The have obtained ownership rights for a nominal fee and they promise to make the mortgage payments on behalf of the owner. What if they forget or just plain lie and don't do it? The homeowner is now on the hook, but has signed away their equitable title and ownership interest.
In the meantime the mortgage company is unaware of the deed being signed and recorded, or they would enforce the "due on sale" clause.
Hopefully the local news organizations around Florida will pick up on this story and make the public aware of how these "save your home" programs work.
Regards,
Phillip E. Jones, Broker/Owner
Your Choice Real Estate, Inc.
The Best Value in Real Estate!
151-18 College Drive
Orange Park, FL 32065
Phone: (904) 298-2679 Ext 501
Toll Free (888) 490-0671 Ext 501
Fax: (866) 923-9990
www.ycre.net
Submitted by Lori Cox on October 17, 2008 - 2:49pm.
Many states have enacted legislation to prosecute to the fullest extent of the law these Mortage Rescue Scam Companies. I believe what is so badly needed is a message of warning to these distressed homeowners. "If it sounds to good to be true...then it is probably a false claim of rescue." Homeowners need to be warned not to sign ANY documents for the rescue of their homes to ANYONE without qualified legal advisors reviewing the paperwork. Unfortunately, many homeonwers in distress are looking for the "magic" solution and these scam artists prey upon the distressed homeowner. Many local housing groups offer counseling to distressed homeowners and as real estate professionals speaking to distressed homwonerers, I believe it is our obligation to advise sellers to seek assistance from legitimate resources. Many sellers do not know that the first place they should turn is to their lender.
Submitted by Mott Marvin Kornicki on October 17, 2008 - 3:07pm.
It appears that the company being sued has preyed on extremely vulnerable people facing foreclosure and the possibility of being homeless.
$10,000 fine per violation... I hope that they get 1,000 of violations!
Mott Marvin Kornicki, Broker
www.WaterwayRealty.com
305.935.3533 Main Line
Submitted by Maurice Stewart on October 18, 2008 - 12:27pm.
It is very sad on two levels:
Firstly; The accused have taken hard and cold cash from already distressed families and secondly; Are these companies not keeping abreast with the news and statutes to realize that the law is serious about protecting the already weakened homeowners?
I can only imagine that these folks have a dynamite advertising machinery to have attracted so many homeowners, but I think they lack the capacity to process the files which has lead to their eventual demise.
For whatever it is worth, private for-profit companies may use what some non-profits and cities are currently using to get the files processed in about 30 minutes. This online tool will reduce the number of processors, reduce cost and increase revenues while making sure that clients get help and trade money for value. The site is
www.lossmitigationexpress.com
software licenses are available for use through a group of nationally recognized housing consultants.
For additional information contact send an email to ccna@mindspring.com
Maurice Stewart
(561)503-6171
Submitted by Emily in Austin on October 19, 2008 - 11:04am.
It is incredible to think that in a tough time like this, there are companies so heartlessly preying on people who just don't know better and are desperate. I'm so glad to hear that this company was caught and is being sued -- they must not have read up on the laws. They certainly do need to be punished for doing something this deceptive and cruel.
Austin real estate | Steiner Ranch | Austin Home Search
Submitted by Ross Milroy on October 20, 2008 - 8:20am.
I hope that the Florida Attorney General ensures that they are punished to the full extent of the law. Now if only someone would really put the kabosh on these companies and restrict them from allowing debtors to use credit cards for payment of loan modification services.
Ross Milroy
Inside Sobe Real Estate Journal
http://www.insidesobe.com/blog
http://www.miamiangelproperties.com