Florida AG Cracks Down On Foreclosure Rescue Scams In Civil Suits

In Central Florida, The Bradenton Herald reports:

• [Florida] Attorney General Bill McCollum is suing four foreclosure rescue companies, accusing them of fraud and/or deceptive and unfair trade practices. Civil suits are pending against A Realty Rx, Florida Housing Council, Law & Associates and National Foreclosure Management.

• McCollum's mortgage fraud task force also is investigating 17 others, spokeswoman Sandi Copes said. Seven have ties to the Tampa Bay area: EMC Mortgage Corp.; Florida Foreclosure Prevention & Assistance Program; Garco; Home Assure; Law & Associates; Mortgage Assistance Solutions (also known as Fresh Start); and U.S. Mortgage Crisis Center.

• The investigations stem from the nearly 2,100 foreclosure fraud complaints, [...] Copes said. "The problem appears to be widespread throughout the state," Copes said.

***

• Given the focus on rescue schemes, it's likely there will be more prosecutions, authorities indicate. "We are gearing up and looking into complaints of mortgage fraud, but until we have charged someone we can't discuss ongoing investigations," said Steve Cole, spokesman for the U.S. Attorney's Office in Tampa.

• While the number of rescue-scheme prosecutions might rise, it's likely that such scams are on the wane, said [Michael] Wasylik, the attorney representing [four] Sarasota County homeowners [who were screwed over by one foreclosure rescue scam group]. "I think the market is going to be taking care of a lot of the problem because the incentives are going away," he said. For one thing, there's less equity to steal. Just as the runup in prices during the housing boom artificially inflated equity values, the decline in prices is reducing it, he said.

For more, see McCollum, Legislature crack down on fraud.