Foreclosure rescue scams continue in South Florida: Seven new companies being investigated

Despite the passing of the Florida Foreclosure Fraud Rescue Act, the Florida attorney general began investigating seven more foreclosure rescue companies, bringing the total number of companies under investigation to 11. The companies are based in Miami-Dade, Broward and Palm Beach county.

A Miami-based mortgage modification outfit, Lincoln Lending Services LLC, targeted Hispanics facing foreclosure, said state officials who sued the company in March. The suit filed by Attorney General Bill McCollum claimed Lincoln Lending and its owner, Rita Gomez, defrauded 10 homeowners and violated the state's deceptive and unfair trade practices law by assessing upfront fees.

The Attorney General is seeking a court order dissolving the companies and obtaining restitution for the consumers who paid money to these companies. Refunds may be hard to come by as the companies telephone numbers are already disconnected and the owners are likely nowhere to be found.

Florida Foreclosure filings decreased but Florida foreclosures remains high in national foreclosure rate

In a previous post, I discussed the decrease in foreclosure filings over the past month. Experts suggested that this was no cause for celebration. It turns out that the experts are correct.

Florida foreclosures are the third highest in the nation, according to realty trac. From January through June, 2009, 3% of Florida homeowners received at least one foreclosure filing. Florida's foreclosure rate is even more disturbing. With 268,064 properties receiving a foreclosure filing in the first six months of 2009, Florida documented the second highest state total number of foreclosure filings. Florida foreclosure activity in the first half of 2009 increased 7 percent from the previous six months and was up nearly 42 percent from the first half of 2008.

It is clear that Florida foreclosures will continue at an alarming rate as more and more homeowners are affecting by foreclosure. As unemployment is expected to rise, it is a certainty that this will lead to more foreclosure filings as well.

Facing foreclosure? What not to do

You’ve been served with a foreclosure action. Like many people, you are probably receiving lots of advice and unsolicited mail and telephone calls urging you to take one action or another. Foreclosure is overwhelming enough and now you have to decide what to do. Depending on your situation, there may be options for you and picking the best one is a matter of understanding the facts and circumstances and reviewing them with someone who is knowledgeable about both the law and the foreclosure process. If you make the wrong first move, your foreclosure action may be over before you have a chance to decide. Below some common mistakes made by homeowners facing foreclosure.

1. Do nothing: Remember when you were a little kid and you’d hide under the covers when you were scared? Many people have that same reaction as adults. If they ignore a problem, it will go away. In the case of foreclosure, the only thing that will go away if you ignore it is your house and the possibility of your keeping it or avoiding a judgment of foreclosure against you.
2. Go to court without representation: Some people decide that they will wait until there is a court date. At that point, they figure they will show up, tell the judge their story and he/she will not allow this to happen. This does not work because, while a judge may sympathize with your situation, the judge is required to follow the law. In order to prevent a foreclosure, you need to have a legal defense.
3. Fall victim to a scam: Unfortunately, there are people out there seeking to take advantage of homeowners who have been served with a foreclosure action. In a previous post, I discussed some of the more prominent foreclosure scams. Beware of any non lawyer who charges an upfront fee, anyone who offers to help by taking title to your home, or placing your home “in trust” while you work with the bank or any phone offers promising to stop foreclosure. Sadly, these scams exist and many who are already in an unfortunate situation have become victims.