South Florida foreclosure rescue firms ordered to shut down

A Palm Beach Circuit Court judge granted an emergency ruling that four mortgage modification operations who are currently under investigation by the Attorney General's Office must cease doing business. The companies are: FHA All Day.Com, Safety Financial Services, Housing Assistance Law Center and Housing Assistance Now.

Two of the companies named above have been shut down. However, when investigators showed up at the businesses, they found employees shredding documents. Investigators reported that among the about to be shredded documents was personal information belonging to alleged clients of the firm.

State regulators have launched 81 investigations against mortgage modification operations, including 14 where lawsuits have been filed. Officials said investigators are looking at 86 additional companies and that the numbers may grow. The Federal Trade Commission also has launched a major crackdown on foreclosure rescue firms with its Operation Loan Lies, announcing 189 actions in 25 states earlier this month.