07/29/2009
Office of the Attorney General - Florida's Fight Againist Mortgage Fraud
This week, news reports indicated Florida has the second highest foreclosure
rate in the country. To make matters worse, the increase in foreclosures
statewide is coinciding with the highest unemployment rate in the state since
1975. There is no doubt Floridians are in dire straits because of the current
economic crisis.
The uncertainty caused by the current financial climate invites scam artists to
prey on fears and victimize families already in financial distress. One of the
ugliest scams I have seen is the increase in mortgage rescue firms that take
fees up front from homeowners facing foreclosure, presumably to assist them by
modifying their loans or helping revise their payment schedule. These scam
artists do nothing to prevent the foreclosure, keep the fees, and let the homes
fall into foreclosure. By the time the homeowners discover the fraud, it is too
late.
My office continues to fight these unscrupulous individuals. We currently have
approximately 73 active investigations, and are reviewing over 300 companies for
potential violations with the numbers are growing each day. Today, we filed
another lawsuit, this time against a Central Florida company called Victor Lopez
and Associates, which was allegedly targeting Hispanics and charging substantial
up-front fees for loan modification services.
The best tool in the fight against con-artists is education. The more Floridians
know about these scams, the less likely they are to become victims. I encourage
you to visit our mortgage fraud website at
http://www.myfloridalegal.com/mortgagefraud to learn more about how to protect
you and your family from mortgage fraud.
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