The Florida Attorney General's Office has announced it has filed suit against three loan modification companies for charging upfront fees to homeowners while not providing the services they were hired for. Loan modifications have become extremely popular in Florida, as struggling homeowners have sought help to lower monthly mortgage payments. Charging upfront fees for loan modifications is illegal under Florida law. The companies allegedly told homeowners their mortgage debt would reduced and would be able to successfully prevent foreclosure.
The mortgage modification companies: Home Owner Protection Economics, Inc., DC Financial Group and Deleverage America, Inc., have been order to cease their operations by the court handling the case. In addition, the financial assets of the owners of the companies have been frozen by the court. The companies charged fees varying between $495 and $2000, most of which was for work that was never completed.
This is just one of what should be many suits brought against mortgage modification companies. Unscrupulous mortgage modification companies are one of the fastest growing areas of mortgage fraud and homeowners should be beware. If you are facing a potential Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to see what foreclosure alternatives are available to you.
