Understanding Florida’s Foreclosure Rescue Fraud Prevention Act (FFRFPA)

Given the high number of foreclosures that take place in Florida, it is really no surprise that there are many people who try to take advantage of the situation. One of the ways that this can happen is through fraudulent foreclosure rescue programs or services.

When someone is in foreclosure, or at risk of foreclosure, they are typically going to be under a lot of stress, and are afraid that they will lose their home. Criminals can prey on that vulnerability by claiming that they can help them get out of the foreclosure and save their home. This problem became so widespread over the past few years that Florida lawmakers passed the Florida Foreclosure Rescue Fraud Prevention Act (FFRFPA).

What Is the FFRFPA?

This legislation is designed to help provide protection to those who are having financial problems and are facing a foreclosure. Specifically, it regulates all individuals and companies that offer products and/or services related to helping homeowners save their home from foreclosure. This act only applies to residential homeowners, not commercial property.

Some of the specific services that are regulated under the FFRFPA include:

  • Stopping Foreclosure – Companies that make any claim to be able to stop, or delay, the foreclosure process.
  • Getting Caught Up on Mortgage Payments – Companies that offer any type of service designed to help you get caught up on past due mortgage payments.
  • Transferring Partial Interest in Property – Any company that offers to transfer a partial interest in your home in exchange for getting you out of foreclosure (and possibly reducing your payment).

This act does not regulate:

  • Companies that offer assistance with selling your home
  • Conducting transactions between relatives
  • Making specific agreements between you and a lender
  • Any service providing a certificate of title once a foreclosure has been completed

Your Right to Cancel

One of the key rights that is identified in this legislation is the right to cancel an agreement within three days of signing without any type of obligation or penalty. This gives you the option to change your mind, which is important due to the fact that many of the unreputable services use high pressure sales techniques to get people to sign up for services that they don’t need.

Always Work with a Reputable Partner

This legislation offers excellent protections to many people throughout Florida. The best way to avoid getting scammed when you’re facing foreclosure, however, is to make sure you are working with a reputable, professional lawyer. Here at the Law Office of Ray Garcia, we help people manage all their real estate transactions and litigation, including foreclosures. Contact us to discuss your options today.