Monday, May 21, 2007

More On South Florida Foreclosure Rescue Operator Jack Moussa

The South Florida Sun-Sentinel has an investgative report today on foreclosure rescue operator Jack Moussa and his company, Florida Housing Council. This is the second media report recently done on Moussa and his firm; the first being one done by South Florida TV station WSVN-TV Channel 7 (for prior post on Moussa and the Channel 7 report, see More Foreclosure Rescue Victims Fighting Back).

Today's story reports that Florida Housing Council and Moussa have faced seven lawsuits -- one was settled, six are pending -- in Broward, Palm Beach and Miami-Dade county courts in the past three years alleging fraud and deceptive practices.

Hollywood, Florida attorney David Silverstone, who recently settled a case against Florida Housing Council and has another pending, states "I think the Florida Housing Council is taking advantage of people who are in a desperate situation. They are saying one thing and then presenting papers that show something else. It's hard for even an attorney to get through these documents."

For more, see:

Go here for other posts on the foreclosure rescue activities of Jack Moussa and Florida Housing Council.

Editor's Note

There is plenty of case law in Florida (and other places as well) that allows courts to recharacterize these sale-leaseback foreclosure rescue deals as (possibly usurious?) secured loans / equitable mortgages. Go here for more on the Florida case law on equitable mortgage (some of which also addresses usury) to consider how the case law may be applied to foreclosure rescue transactions structured as a sale leaseback, or variations thereof, with a right to buy back the property in the future. Contained at this link are, among others, the following two posts: