Florida is among the worst hit in the housing crisis. Topping the nation’s foreclosure chart, Floridians have suffered with personal debt burdens, unfair lending practices and predatory mortgage modification companies. Lawmakers are hoping a new legislation will put an end to these problems and help homeowners have a fighting chance at keeping their homes.
Predatory Foreclosure Relief Efforts
It is estimated that more than a quarter of a million homes are in some aspect of the foreclosure process in Florida. Originally thought to be the effects of the economy or poor money management on behalf of the homeowner, have now been discovered to be the outcome of an increase in predatory modification practices. Consumer reports of unfair practices has revealed a significant increase in non-reputable companies operating under the guise of offering homeowners help to prevent foreclosure.
Struggling and desperate homeowners get a call from, what seems to be, a legitimate company offering help with their foreclosure problems. The problem is, these companies do not work for, or represent, their lender. Fees are paid and phony paperwork is signed, leaving the homeowner under the impression they were successfully negotiating a deal with their lender. The homeowner ends up in default because they were unaware the loan modification was fraudulent.