Is Florida Attorney General Pam Bondi cracking down on foreclosure scams? Reports indicate that she is. Bondi’s office is allegedly looking into HOA Problem Solutions, a Tampa-based property management company, for a possible foreclosure scam.
HOA Problem Solutions of Tampa seems to have been profiting from renting out homes which are in foreclosure. The official subpoenas issued for this company in particular note an investigation into “unfair, deceptive and unconscionable” business practices. The Florida Attorney General’s office has mandated that all lease agreements the company has issued be handed over, as well as contact information for anyone the company has solicited.
It is not uncommon for third-party companies like HOA Problem Solution to purchase foreclosed properties at auction for a relatively small investment. Though obtaining these properties for next to nothing has proposed legal questions in the past, it is the practice of accruing quit-claim deeds directly from the owner that has people questioning HOA Problem Solutions now. The company allegedly secured many of its deeds by promising homeowners that it would take care of HOA fees and any necessary property maintenance. According to one homeowner, Robert Gaston, the company did not follow through. Since transferring the deed does not release a homeowner from the obligation of payment, it is Gaston who must pay up and whose credit will be tarnished.
What the Investigation Means for Floridians
This latest move from the Florida Attorney General’s office suggests that increased attention will be paid to companies which try to make a quick buck off a foreclosure situation. If the allegations do indeed prove to be true, HOA Problem Solutions certainly is not the first or the last company to try to take advantage of homeowners in financial distress. This investigation also serves as a wakeup call for Florida homeowners to be informed about the conditions and obligations of any agreement they sign into. Transferring a deed does not transfer ownership of debt, and does not release the owner from his legal responsibility to repay what was borrowed.
If you are dealing with a potential foreclosure, you should not face it without the help of an experienced Miami foreclosure defense attorney. Call the team at Graham Legal for supreme legal advice and unmatched representation.