Tuesday, July 21, 2009

Florida AG sues home loan modification companies

Florida’s attorney general has filed a lawsuit against four South Florida companies that allegedly collected upward of $1 million in illegal upfront fees for loan modification services to homeowners facing foreclosure.

FHA AllDay.com of Deerfield Beach and its owner, Jason Vitulano, along with three other affiliated companies, are alleged to have solicited hundreds of distressed homeowners nationwide using the Internet and robo-calls that featured President Barack Obama’s voice.

According to the complaint, filed in Palm Beach County Circuit Court, Vitulano’s companies were charging as much as $5,000 to modify loans for those who faced losing them to lenders.

The other companies, which went by the names Safety Financial Services Inc., Housing Assistance Law Center PA and Housing Assistance Now Inc., were previously located in Boca Raton and Delray Beach.

The suit alleges that the companies promised to work with lenders to reduce debt and prevent foreclosures. However, consumers claim the companies did not perform the promised services, and that they were unable to contact the companies or get their money back.

The attorney general’s office received as many as 300 complaints.

The lawsuit asks that Vitulano and his companies be prevented from continuing to do business and that the court order the dissolution of the businesses, as well as award civil penalties of $15,000 for each violation of the Foreclosure Fraud Prevention Act.

To file a complaint go to www.myfloridalegal.com/mortgagefraud or call (866) 966-7226.