TALLAHASSEE, Fla. — Florida's Attorney General has filed a lawsuit against a south Florida company and its owners alleging that they engaged in a deceptive foreclosure rescue and mortgage default mitigation scheme.
According to a statement issued by the Attorney General's Mortgage Fraud Task Force, the defendants told Florida homeowners that they should not make their payments to their mortgage lenders but should instead pay Outreach Housing LLC 60% of the amount due. In return, the company and its owners allegedly claimed they would work with lenders to reduce homeowners' mortgage debt.
"They are way off the mark," Blair Wright, director, Outreach Housing, said in a telephone interview about the lawsuit.
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The AG's office said it received more than 50 complaints about the company but that further investigation revealed that more than 600 homeowners had signed up for the company's services.
The lawsuit seeks consumer restitution and civil penalties and asks that the defendants be prohibited from engaging in activities related to the mortgage industry.
Florida's Foreclosure Rescue Fraud Prevention Act of 2008, which went into effect Oct. 1, specifically targets deceptive mortgage rescue schemes.
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