Florida AG Files Civil Suit Against Foreclosure Rescue Firm Promising To Find Errors In Homeowners' Loan Docs, Then Fight Lenders

In Fort Lauderdale, Florida, the South Florida Sun Sentinel reports:

• Fort Lauderdale-based Outreach Housing calls itself a grass-roots organization with "a groundbreaking initiative" to help South Florida homeowners threatened with foreclosure. But the Florida Attorney General's Office said Thursday that behind that promise of mortgage relief is a company engaged in deceptive practices that have left a trail of at least 50 complaining homeowners.

• The state filed a consumer protection lawsuit against Outreach Housing, asking a Broward Circuit Court judge to issue an injunction preventing it from engaging in any aspect of the real estate business. Also named as defendants in the suit are Blair L. Wright and Bryan Berry, the two men the state says own the company.

• Outreach Housing promises to help imperiled homeowners by finding inaccuracies in lending documents and then fighting mortgage companies to prevent foreclosure and obtain financial restitution, according to its Web site.

• The Attorney General's Office said Outreach Housing instructed clients to stop paying their mortgages and instead pay the company about 60 percent of what their monthly mortgage payment would be. Customers complained that Outreach Housing took their money, but they didn't receive any relief in return, the Attorney General's Office said.

• In addition, the company engaged in the unauthorized practice of law, according to the lawsuit filed Monday.(1)

For more, see Lauderdale firm didn't deliver mortgage relief, state suit alleges (Lauderdale company denies wrongdoing and says it was let down by law firms it trusted to help individuals).

For the Florida attorney general's press release, see Broward Foreclosure Debt Mitigation Company Sued for Deceptive Practices (Their investigation revealed that more than 600 homeowners had signed up for the company’s services).

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According to their website, "Outreach Housing has dedicated sufficient resources to provide relief for $1.2 Billion in residential properties. Through the efforts of Outreach Housing, a dedicated network of professionals will pursue restitution for thousands of homeowners faced with foreclosure by outlining the TILA and RESPA violations that occurred at the lenders level—bottom-line this effort will allow the homeowner to stay in their home."

(1) Go here and go here for other posts on issues relating to attorneys, loan modifications, and the unlicensed/unauthorized practice of law. UnauthPractOfLawKappa UndoMortgageLoans TILAdelta