Florida Foreclosure scams: how low can they go?

Four more South Florida mortgage loan modification companies have been sued this week for violations of the Florida Foreclosure Rescue Fraud Prevention Act. FHA All Day.Com, Inc., Safety Financial Services, Inc., Housing Assistance Law Center PA and Housing Assistance Now, Inc. were named in the suit, as well as FHA All Day and Safety Financial owner Jason Vitulano. To date, the Attorney Generals office received over 300 complaints about the Delray Beach and Boca Raton based businesses.

The four related companies allegedly targeted homeowners with telemarketing calls, using President Obama's voice, charged upfront "document review fees" and "legal costs".

Vitulano reportedly told the Sun Sentinel that said he only had rented space to Housing Assistance Law Center and denied any connection with Housing Assistance Now. He and the Attorney General's Office had discussed settling for $15,000 in investigative costs and $20,000 in restitution regarding FHA earlier this year but Vitulano said negotiations broke down when he refused to also permanently abandon the mortgage modification business.

While the Attorney General's office appears to be vigorously pursuing companies who violated the Foreclosure Fraud Prevention Act, it appears that these actions alone are not enough to prevent the widespread fraud and resultant damage from companies and individuals who seek to profit illegally from the misfortune of Florida homeowners. Until the public is sufficietly educated about the foreclosure fraud law, thus able to avoid paying large fees to companies who will do little or nothing to assist them, it appears that the fraud will continue.