Fla. AG Tags Alleged F'closure Relief Racket w/ Civil Suit; Outfit Allegedly Pocketed Upfront, Monthly Fees, Promised Homeowners Mortgage-Free Living

In West Palm Beach, Florida, The Palm Beach Post reports:

• Two West Palm Beach-based companies are being sued by the state for taking upfront fees to help struggling homeowners and promising them they can live mortgage-free for years.



• In return for the free-living, the homeowners paid CRS Marketing and MGD Management $300-a-month to stall a foreclosure, according to the state complaint. Also named in the suit is West Palm Beach resident Mark Dalen, who owns the two firms.



• Florida Attorney General Pam Bondi obtained a temporary injunction and limited asset freeze against the companies, which also have offices in Hollywood. The lawsuit, dated Dec. 28, says hundreds of Florida consumers have been "victimized" by the companies' "false representations." Homeowners were also allegedly charged upfront fees of between $1,500 and $2,500 as well as the monthly $300 fee.



• It is illegal in Florida for most companies to charge upfront fees for foreclosure rescue services or loan modification help.

For more, see Florida AG lawsuit: West Palm Beach firms preyed on distressed homeowners.

For the lawsuit, see State of Florida v. MGD Management, LLC, et al.

For the Florida AG press release, see Attorney General Pam Bondi Sues Two Foreclosure Management Companies for Defrauding Homeowners Facing Foreclosure (Attorney General Bondi Achieves Temporary Injunction and Limited Asset Freeze).