When individuals find themselves in stressful and desperate situations, they often become vulnerable to those who are looking to take advantage of someone else’s confusion. Not only have struggling homeowners been taken advantage of by banks through faulty foreclosure practices, but Florida homeowners have also been taken advantage of by businesses through faulty loan modification practices.
The Florida attorney general’s office is now suing three Florida companies for failing to provide the agreed upon services for loan modifications while charging upfront fees to homeowners. A Palm Beach County Circuit Court Judge has temporarily shut down the three businesses and has also ordered that the assets of the companies’ owners be frozen.
Loan modifications have become a popular alternative for some Florida homeowners who are facing foreclosure. In some cases, banks will work with the homeowner in order to make the owner’s monthly mortgage payment more affordable in efforts to prevent foreclosure. As a result of more struggling homeowners considering loan modifications, many businesses have been able to benefit from the situation by offering mortgage modification services.
Unfortunately, many homeowners were taken advantage of when they sought services from several businesses in Florida to protect their homes. Home Owner Protection Economics, Inc., DC Financial Group and Deleverage America, Inc. have all been accused of charging homeowners upfront fees for loan modifications, which is illegal in Florida. The attorney general’s office also claims that once the companies were paid, they failed to provide the agreed upon services. In some cases, the lenders and banks holding the homeowners’ mortgages were never contacted to work out a loan modification.
Florida residents who are concerned about losing their home to foreclosure should remember that although there are alternatives to south florida foreclosure, they should always make certain that they discuss their options with an experienced professional who understands real estate and the law.