Court Grants Emergency Request to Halt Central Florida Foreclosure Rescue Company’s Up-Front Fees

TALLAHASSEE, FL – March 30, 2009 – (RealEstateRama) — Attorney General Bill McCollum today announced that his office has obtained an emergency court order temporarily prohibiting a Central Florida company from charging up-front fees for foreclosure-related rescue services. According to the order issued by the Orange County Circuit Court, Wineberg, Lopez, & Rodriguez Company is barred from charging homeowners any fee in advance for providing foreclosure-related rescue services. Wineberg Lopez, & Rodriguez Company must comply with written notice requirements contained in the Foreclosure Rescue Fraud Prevention Act, which became law on October 1, 2008.

The Attorney General’s Economic Crimes Division began investigating Winberg, Lopez, & Rodriguez Company in February and filed a lawsuit against the company earlier this month. The investigation revealed Winberg, Lopez, & Rodriguez Company, which also did business under the names Winberg, Lopez, & Rodriguez Company, Wineberg, Lopez, & Rodriguez, and Wineberg, Lopez, & Rodriguez, P.A., allegedly charges an up-front fee as high as $1,995 to homeowners who are seeking foreclosure-related rescue services.

The lawsuit alleges violations of the Foreclosure Rescue Fraud Prevention Act. The injunction against Wineberg, Lopez, & Rodriguez Company will remain in effect until the resolution of the case. No further hearings are set at this time. Consumers affected by these or other practices may file a complaint online at http://www.myfloridalegal.com or may call the fraud hotline at 1-866-966-7226.

Attorney General McCollum worked with the legislature to pass The Foreclosure Fraud Rescue Prevention Act, which became law on October 1, 2008. This law, Florida Statutes 501.1377, protects homeowners who are in foreclosure or behind in their mortgage payments from companies offering potentially fraudulent foreclosure “rescue” services. Specifically, the statute governs companies providing foreclosure-related rescue services including loan modification and short sale services. These companies are prohibited from charging homeowners an up-front fee for these services and must provide homeowners with a written agreement. The law was one of the Attorney General’s legislative priorities during the 2008 Legislative Session.

The Attorney General’s statewide offices continue to review the practices of many companies providing foreclosure-related rescue services to ensure that they are in compliance with the new law. Homeowners should exercise caution when seeking help to prevent mortgage foreclosure. Generally, homeowners should first attempt to negotiate with their lender before turning to outside help. More helpful hints for homeowners can be found at <http://myfloridalegal.com/pages.nsf/Main/55BC21CB13128F728525741800481491