“The Attorney General’s Office is taking action against unscrupulous individuals who attempt to take advantage of our citizens when they are desperate to protect their homes,” said Attorney General McCollum. “We are tackling this growing problem from several directions to help keep families in the homes they’ve worked so hard to achieve.”

In addition to filing the lawsuit, the Attorney General announced the filing of the “Foreclosure Rescue Fraud Prevention Act,”. The proposed legislation will ensure that, among other things, homeowners are properly informed about their rights when they are signing a contract with a foreclosure rescue entity.

“When people are on the brink of losing their homes, they are desperate for any assistance available and all too often they trust a wolf in sheep’s clothing,” said Senator Fasano. “We must strive to protect Florida’s homeowners from such a dangerous situation.”

“This legislation is designed to protect homeowners from individuals who attempt to prey upon them in their time of distress,” said Representative Ford. “We must make every effort to shelter our citizens from this blatant form of deception.”

The proposed legislation offers the following key provisions:

-- A five-day right of cancellation period that allows the consumer to cancel the agreement with the foreclosure rescuer;

-- Requirements that foreclosure rescuers include in the contract clear and conspicuous notice to homeowners of this right of cancellation as well as a recommendation that the homeowner contact the lender or mortgage servicer prior to the signing of the agreement and a provision that states the consultant is prohibited from accepting any form of payment until all services are completed;

-- Definitions of such terms as “Equity Purchaser,” “Foreclosure Consultant,” “Foreclosure-related Services,” and “Foreclosure Rescue Transaction”; and

-- That all violations of this act are defined as an unfair and deceptive trade practices and are subject to the penalties included in Part II of Chapter 501, Florida Statutes.

The legislation is filed under Senate Bill 992 and House Bill 643.

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