Attorney General Bondi Takes Action Against Companies Targeting Financially Distressed Floridians

TALLAHASSEE, Fla. – (RealEstateRama) — Attorney General Pam Bondi’s Office filed a complaint against HOA Problem Solutions, Inc., as well as several related companies, for using deceptive and unfair practices to acquire properties from financially distressed homeowners. These Floridians’ homes faced impending homeowners’ association foreclosure auction because of outstanding HOA dues. According to the complaint, HOA Problem Solutions told homeowners that they could walk away free and clear from properties if the homeowners executed a quitclaim deed for a fraction of the value of the home. However, the homeowners who executed quitclaims are still being held responsible for prior home loans.

The complaint alleges that once HOA Problem Solutions gained control of the properties, the corporation rented out the homes and collected rent payments for personal profit. The corporation then failed to make payments to holders of the mortgages, in violation of Florida’s Deceptive and Unfair Trade Practices Act. Additionally, HOA Problem Solutions allegedly failed to adequately disclose to tenants that the properties faced foreclosure and the tenants might not be able to stay throughout the term of the leases.

Attorney General Bondi’s Office is seeking to stop HOA Problem Solutions from buying, selling or renting residential real estate, including participating in future foreclosure auctions. The corporation also faces civil penalties for violations of FDUTPA.