Florida AG Investigating Foreclosure Rescue Operators

According to the website of the Florida Attorney General's office, there are at least three active public consumer-related investigations of foreclosure rescue operators by the Florida AG's Economic Crimes Division. The investigations, which the AG's office says are civil - not criminal - in nature, involve the following foreclosure rescue operators:

• Case Number: L05-3-1161 - Family Trust Financial Services, Financial Solutions, Family Trust, Lee Heath, Richard Wilson (Tampa)
• Case Number: L05-3-1167 - Foreclosure Assistance Solutions a/k/a Foreclosure Assistance Services (Clearwater)
• Case Number: L06-3-1014 - Mortgage Assistance Solutions, LLC (Dunedin)

Florida residents victimized by a foreclosure rescue operator can file a complaint here.

Editor's Note

As I have mentioned in the past, there is plenty of case law in Florida (and other places as well) that allows courts to recharacterize these sale-leaseback foreclosure rescue deals as secured loans / equitable mortgages. Further, if the profit on a foreclosure rescue, sale leaseback that a court recharacterizes as a loan or equitable mortgage exceeds 18% per year, the loan violates Florida's civil usury statutes (Section 687.03, Florida Statutes). If the profit exceeds 25%, the deal violates Florida's criminal usury statutes (Section 687.071, Florida Statutes). Profit in excess of 45% per year can result in felony charges. For more on this, see:

• Equitable Mortgage & Usury In Sale Buyback Deals In Florida
• More On Equitable Mortgage & Usury (Florida)
• Equitable Mortgage Doctrine In Florida
• Go here for more on Florida equitable mortgage / disguised loans / usury and related claims
• Chapter 687, Florida Statutes - Interest and Usury

For more information on cases throughout the country on recharacterizing sale-leaseback arrangements as secured loans / equitable mortgages, see The Home Equity Theft Reporter Cases & Articles. equitable mortgage yak