Attorney General, DCP Sue Florida Mortgage Rescue Company For Allegedly Defrauding CT Homeowners

November 23, 2009

Attorney General Richard Blumenthal today announced he is suing FHA All Day.Com, Inc. for allegedly charging Connecticut homeowners tens of thousands of dollars and then failing to deliver on promises to help them avoid foreclosure.

Blumenthal sued the company in cooperation with Department of Consumer Protection (DCP) Commissioner Jerry Farrell, Jr. The lawsuit seeks restitution for consumers and civil penalties of up to $5,000 per violation of state consumer protection laws.

FHA All Day.Com, based in Delray Beach, Fl., allegedly began soliciting Connecticut customers by mail and the Internet in January 2009. The company claimed that for $2,500 to $4,500 it would negotiate with lenders to avoid foreclosure and reduce indebtedness.

FHA All Day.com promised one homeowner a refund of its upfront fee if it failed to obtain a mortgage modification and falsely told another it was authorized by the federal government to provide mortgage rescue services.

The company failed to win loan modifications, reduce indebtedness, give promised refunds or provide other mortgage rescue services, Blumenthal's lawsuit charges.

Blumenthal said, "FHA All Day only did one thing all day: scam consumers. The company demanded upfront fees up to $4,500 -- illegal since October 1 because of legislation I proposed -- to help consumers save their homes. Far from helping homeowners escape debt, FHA All Day exploited them, taking their money and delivering nothing. Callously and cruelly, bottom feeder mortgage rescue schemes hit families when they are most vulnerable, desperate to save their homes. It conned consumers by falsely claiming connection to the federal government, building trust only to trash it.

"We will fight for restitution -- money back to consumers manipulated and misused by FHA All Day -- as well as stiff, severe penalties. We have zero tolerance for roving mortgage rescue scammers seeking to steal from homeowners in crisis.

"Upfront fees demanded by FHA All Day became illegal on October 1 thanks to legislation I proposed, making such rip offs harder. I will continue fighting for additional protections shielding homeowners facing foreclosure from greedy and grasping grifters."