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Florida Mortgage Fraud Crisis Called 'State Of Emergency'

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By SHANNON BEHNKEN

sbehnken@tampatrib.com

Published: March 27, 2009

TAMPA - As more Floridians face losing their homes to foreclosure, more crooks emerge to take advantage of them, and the state's attorney general says the problem has become a crisis.
Bill McCollum said Thursday that he is asking state law enforcement and investigative agencies to step up plans to battle mortgage fraud in a more cooperative way.

"This mortgage fraud crisis is similar to a state of emergency. It will take an all-hands-on-deck approach between our state's agencies to effectively address our citizens' concerns," McCollum said.
Mortgage fraud topped the list of complaints logged by his office in 2008, and the state has pursued civil and criminal action against dozens of companies and individuals accused of mortgage fraud.

A new law in 2008 put mortgage rescue firms under the microscope, prohibiting companies from business practices such as requiring upfront fees.

Still, complaints continue to come in from across the state.

Rescue fraud continues to be the top mortgage fraud complaint by homeowners. Many say companies are taking their money and not helping them modify their mortgages.

Reporter Shannon Behnken can be reached at (813) 259-7804.

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