Florida Judge Throws Loan Modification Firm Into Receivership; Company Left Many Homeowners Worse Off, Says State AG

In Fort Lauderdale, Florida, The Miami Herald reports:

• A Broward Circuit judge has placed Margate-based foreclosure rescue company Outreach Housing into receivership and banned its principal, Blair Wright, from certain business activities. The action follows a suit by the Office of Financial Regulation alleging the company was wrongly taking money from homeowners in foreclosure.

• According to the state agency's complaint, Outreach persuaded numerous homeowners facing foreclosure to pay it up to 65 percent of their regular mortgage payment each month in exchange for help staying in their homes.

• The agency alleges that the company in many cases never helped the homeowners, leaving them worse off than before, and held itself out as a mortgage servicer. Outreach filed a motion Friday to dissolve the injunction, Wright said.

• Borrowers who have contracted with Outreach Housing are encouraged to call the Office of Financial Regulation at 954-958-5508.

Source: Judge wrests control from mortgage helpers.

For the Florida Attorney General's 10-16-08 press release announcing the filing of the lawsuit, see Broward Foreclosure Debt Mitigation Company Sued for Deceptive Practices.

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