In it’s Final Order published on December 30, 2009 the Florida Supreme Court Residential Mortgage Task Force Final Order estimated that there are currently 500,000 foreclosure cases pending in Florida. (The full text is can found here.) Many of these homeowners, and the millions of other homeowners who may be behind on their mortgage but not yet in foreclosure, are contacted by “loan modification specialists”, “loss mitigators”, “mortgage negotiators” and other individuals who claim they can assist the homeowner in obtaining a modifcation of their mortgage or help stop the foreclosure.
If It Sounds Too Good to Be True–It’s a Scam!
In response to the fact that homeowners fall victim to promises made by the individuals mentioned above–promises that most often cannot be fulfilled–the Florida Legislature passed sweeping changes to laws that aims to prevent individuals and companies from targeting homeowners in foreclosure or who are vulnerable to modification scams. A review of the new law that appeared in the St. Petersburg Times can be found here.
A Good First Step, But Not Nearly Enough
While the new law is an excellent first step for consumers and vulnerable Floridians, the con artists and fraudsters will still prey upon consumers and the Attorney General’s Office probably lacks the resources to go after all but the most visible violators of the new laws. Another important issue to consider is that the broad nature of the law potentially makes the conduct of title agents and even Realtors subject to the law’s restrictions. The bottom line is consumers need to rely on experienced and properly-licensed Florida attorneys to assist with any issues related to mortgages and foreclosure.
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So, I guess Part2 of my business will now be illegal….offering knowlege & options to distressed homeowners. Should I cancel the workshop I am having Jan 14?? Or would you like to be there??? (actually, I think we do have an attorney that will be there…) It is a good thing for the scammers – but for those of us that really do want to help the homeowner sort out the options, it seems silly. They don’t have the money to contact an attorney for help and advice – if they did, they probably would have the money for the mortgage payment.
Yes, they are really casting with a wide net here. It was clearly intended to hurt the scammers, but it also absolutely covers anyone else who negotiates with lenders whether on behalf of borrowers or other parties trying to purchase the property….especially if it’s a short sale and the lender pursues a deficiency. Please keep me advised, I would be happy to sit in and do whatever I can do to help!
The sad thing here is a law made by Attorneys to protect the public ends up benefiting only Attorneys who are mostly interested in their fees and not really trying to resolve this mess. Educating home buyers and owners making them responsible for their actions would eliminate about 90% of the problems. Learning how to take care of yourself should be more important than how the Government will take of you. There is a simple answer to the housing mess. It is called Pride in your community.
I agree the system is a mess, a diaster, a train wreck and it is only going to get worse. To a certain extent you are right about attorneys but in my mind the real villians are the banks, brokers and lenders who first caused all this mess and now do not have the desire or capability to work these problems out with homeowners efficiently. It is real unfortunate that honest, hard working business people like you that are trying to be part of the solution are going to be hurt the worst in all this.
I saw your site and it looks very good. How do you intend on responding to the new laws?
I am behind on my morgage what do I need to do?
contact me at 727 894 3159 i will be happy to discuss with you.
please contact me at305-733-6050