Jan 22, 2008 6:31 pm US/Eastern
Florida Launches Campaign Against Mortgage Fraud
FORT LAUDERDALE (CBS4) ―
State investigators are concerned that as foreclosures rise, scams by people claiming to rescue homes from foreclosures will rise as well, and that's why the
Florida Attorney General's office has filed a lawsuit that should serve as a cautionary tale for every Florida homeowner.
People like Pamela Simmons might get some justice served. We told you about Simmons last May, after losing her home to National Foreclosure Management.
"I didn't want to let go," said Simmons. "I wanted to continue to fight because I feel this was something I worked hard for."
Florida Attorney General Bill McCollum says this lawsuit aims to get people some money back.
"These homeowners assuming their assets were damaged...they're going to get something out of this."
The suit claims National Foreclosure inflated the values of homes, sold them to a straw buyer, and then took the equity. Homeowners like Simmons were given certificates promising they would get the house back in a year, if they continued paying the mortgage. Simmons learned the hard way that would not happen.
Investigators say they are looking at some 20 cases right now, one of which CBS4 News was first to alert you to several months ago.
Every day that Coconut Creek resident Kayhlene Gainer gets to cook in her kitchen is a blessing. She says she almost lost her home to a mortgage rescue company.
"They took a lot of equity out of the house that I did not know about," said Gainer.
Gainer says National Foreclosure Management contacted her after she fell behind on her mortgage. Gainer says National Foreclosure brought in a straw buyer to purchase the home, and allow Gainer to make the monthly payments. Gainer trusted the company that promised she would own the home again in a year.
"They said to me they were a Christian organization," said Gainer.
And as we first reported last May, lawyers and victims say National Foreclosure targeted several homeowners at a Broward County church. Now the State Attorney General's office wants answers.
"We're investigating a particular South Florida company, National Foreclosure Management, who has allegedly defrauded more than 80 homeowners out of their home equity more than $1.7 million in home equity to be exact," said Sandi Copes, Florida Attorney General Press Secretary.
The office is coming to the rescue of homeowners such as Gainer, and Tuesday the state AG's office will announce a new task force dedicated to stopping mortgage fraud across the state.
"If someone's in a foreclosure situation, they're desperate. They're seeking help. They're looking for anyone who can potentially rescue them and unfortunately scam artists and con men are using this to their advantage," said Copes.
Gainer is still praying she'll be able to keep her home.
And as for the people she trusted at National Foreclosure, "I'm a Christian, and I'm a firm believer that whatever they've done at some point they'll get their just rewards." she said.
National Foreclosure is out of business, so CBS4 News was not able to speak with the owner of the company about these allegations. The attorney general's office says if you think you've been a victim of mortgage fraud, there are several places you can go for help.
If you think you've been victimized contact: The Florida Attorney General's Office 1-866-966-7226 or their website myfloridalegal.com Or Office of Financial Regulation www.flofr.com
The Florida Attorney General also announced the creation of a task force to fight mortgage fraud, and wants a law passed to protect homeowners like Pamela Simmons who face foreclosure and need someone to trust.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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