Florida AG Tags Foreclosure Rescue Operator, Title Agency, Others With Civil Suit In Alleged Sale Leaseback Scam; State "Rescue" Statute Proposed

In Broward County, Florida, the South Florida Sun Sentinel reports:

• Attorney General Bill McCollum has sued a South Florida-based foreclosure rescue company, alleging the firm defrauded dozens of homeowners, and is seeking legislation to strength protections for those facing foreclosure. The civil suit — filed jointly with the Office of Financial Regulation in Broward County Circuit Court — charges National Foreclosure Management Inc. and multiple affiliates violated the state's deceptive and unfair trade laws. The suit claims the foreclosure rescue firm or its affiliates defrauded at least 80 homeowners of about $1.7 million in home equity. The company, which also does business as American Home Rescue Inc., selected homeowners who were facing foreclosure and had substantial equity in their homes, the suit said. The company offered to hold the homeowners' property titles for a year, and refinance the debt while allowing the homeowners to stay in their houses. [...] Representatives of National Foreclosure Management and its agent, Wyman F. Roberts, and American Home Rescue Inc. and its agent, Bernard Williams, could not be reached for comment.

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• On Tuesday, state Sen. Mike Fasano, R-New Port Richey, and state Rep. Clay Ford, R-Gulf Breeze, filed legislation — the Foreclosure Rescue Fraud Prevention Act — to provide a safeguard system to protect homeowners. [...] House Bill 643 — and the companion Senate Bill 992 — would guarantee homeowners a five-day period to cancel any contract agreement with a foreclosure rescue firm. It would require specific definitions be provided to consumers for job titles such as "equity purchaser" or "foreclosure consultant," and prohibit foreclosure consultants from accepting payment until all services are completed. Violators would face up to $15,000 in fines for each infraction.

For more, see Florida attorney general sues foreclosure rescue firm.

For other stories, see:

• Florida AG News Release: McCollum Sues "Foreclosure Rescue" Company, Announces Legislation to Fight Mortgage-Related Fraud (go here for Spanish version),
• The Tampa Tribune: Home Rescue Fraud Is Targeted,
• The Miami Herald: Firms sued for home equity scams (A host of South Florida ''foreclosure prevention'' companies and individuals were sued by the attorney general for scamming dozens of homeowners out of home equity).

To view the lawsuit, filed in Fort Lauderdale, FL, see Office of the Attorney General, et al. v. National Foreclosure Management, Inc., et al.

To view the proposed Florida legislation, see:

• Florida House Bill 643 (bill summary, history, staff analysis) (bill text),
• Florida Senate Bill 992 (bill summary, history, staff analysis) (bill text).