Thursday, January 21, 2010 12:44 PM
Florida Department of Agriculture and Consumer Services discusses foreclosure in their Jan. 2010 issue:
"The foreclosure crisis in the United States continues to be a very real problem. Statistics from the third quarter of 2009 indicate that foreclosure filings hit a record high, with Florida being one of the states most affected. To compound matters, federal and state agencies have seen a significant uptick in fraud being committed by unscrupulous companies targeting distressed and vulnerable homeowners who are either delinquent or already facing foreclosure.
As of January 1, 2010 (494.00296, F.S.), companies or individuals that provide loan modification services within our State are required to have an active license from the Florida Office of Financial Regulation. New provisions, such as this, help to bolster the Foreclosure Rescue Fraud Prevention Act passed by the Florida Legislature in 2008.
This issue of the Florida Consumer E-Newsletter is dedicated to informing consumers who are confronted with foreclosure about their rights and responsibilities, especially when dealing with companies that offer foreclosure rescue or loan modification services. Remember… consumer education is the best defense against fraud and deception!
Losing your home due to foreclosure is a scary prospect. If you’re having trouble keeping up with your mortgage payments, it is imperative that you act prudently.
â Contact your lender or a lawyer to find out what options may be available to you before contracting with any third-party company for rescue or modification services. An attorney can assist you as you navigate your way through the foreclosure process.
â Lower income individuals may be able to find free legal services at www.findlegalhelp.org.
â Contact a reputable non-profit housing or financial counselor, such as: U.S. Department of Housing and Urban Development (HUD) at (800) 569-4287 - www.hud.gov; or Home Ownership Preservation Foundation at (888) 995-HOPE - www.995hope.org
Even after addressing your options as mentioned above, you may still decide that it is in your best interest to utilize a foreclosure rescue business or loan modification company. If so, you should make every effort to know who you are dealing with. Before handing over any money or providing any personal information, research the company/person’s legitimacy and complaint history with both the Florida Department of Agriculture and Consumer Services and the Office of the Attorney General of Florida. Make sure to understand exactly what you’re signing; get any promises made to you in writing, and keep copies of all documents that you sign. Oral promises and agreements relating to your home are usually not legally binding.
The Florida Foreclosure Rescue Fraud Prevention Act is one of the best protections for homeowners from companies offering or providing loan modification services. This law safeguards consumers in a number of ways, some of which include prohibiting the company offering or providing loan modification services from:
â Engaging in or initiating loan modification services without first executing a written agreement for loan modification services with the borrower.
â Executing a loan modification without the consent of the borrower after the borrower is made aware of each modified term.
â Collecting up-front fees from the borrower prior to completing all services contained in the contract.
This law also details exactly what must be included in the written agreement for loan modification services, and requires that the borrower be given a copy of the agreement to review one (1) business day before the borrower is to sign the agreement. Arguably the most important protection given to the homeowner by this law is the right to cancel the written agreement without any penalty or obligation, provided that the cancellation is done within three (3) business days after the agreement has been signed.
For additional information or questions, remember, the Florida Department of Agriculture and Consumer Services is here for you. Visit our website at www.800helpfla.com, or call our Consumer Assistance Center. They will answer almost any question you may have or direct you to the best resource for assistance. If you are calling within Florida simply dial 1-800-HELP-FLA (435-7352."
Editorial from another Blog
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