Florida Authorities Shut Down One Foreclosure Rescue Operator, Investigate Another

In two separate reports, Fox Channel 13 in Tampa, Florida reports that Florida authorities have shut down one upfront fee foreclosure rescue operator earlier this week and are investigating another.

According to one report:

• State consumer services investigators Monday ordered a Clearwater-based company that promises to assist homeowners with foreclosures to close its doors. Agents said the outfit is unlicensed. Foreclosure Assistance Solutions is also at the center of several fraud investigations. According to court papers, clients claim the company takes a $1,200 to $2,000 fee but does nothing to help them settle their mortgage paperwork.

In another report:

• Florida's Attorney General confirmed Tuesday it is investigating Mortgage Assistance Solutions. The company's owner, a California Attorney, said his company provides an affordable service. "It's not a fraud," said Michael Thomas Stoller [the company owner]. [An alleged ripoff victim] said Mortgage Assistance Solutions' sales pitch closely mirrors that of another Clearwater company, Foreclosure Assistance Solutions. State agents shut down Foreclosure Assistance Solutions on Monday, saying it was not licensed to do telemarketing.

Reportedly, both companies are located just two miles apart in Pinellas County, Florida, but they are not linked. For more, see:

• Company accused of exploiting the desperate,
• Second company accused of mortgage scam,
• Go here for Fox Channel 13 TV video - Part 1,
• Fox Channel 13 TV video - Part 2

Editorial Note

It sure looks like the Florida Attorney General's office got "caught with their pants down" on this story. Both of these companies have been doing business in Florida for quite some time, but it took lawsuits by the Attorneys General in Ohio, Illinois, and Texas against these foreclosure rescue operators in order to get Florida authorities to start doing something. It sounds like they used a technicality to shut down one company ("unlicensed telemarketing"), and have reportedly commenced an investigation on the other company.

The Florida AG had active investigations on both these companies at one time, but those investigations ended up being closed out without any mention in the AG's newsletters. Reportedly, they settled one case by making the company refund $80,000 to the homeowners. Compared to some other states, Florida authorities seem to be "a little late" when it comes to investigating and prosecuting (either by civil lawsuit or criminal prosecution) foreclosure rescue scams, especially considering that Florida ranks right near the top in the country in the number of new foreclosure filings. Hopefully, they will pay attention to what some of their colleagues are doing in other jurisdictions (ie. Ohio, Massachusetts, Illinois, Texas, Washington State, and Washington, D.C.) and then reevaluate the priority that they place on foreclsoure rescue scams.