Palm Beach homeowners sue Boca Raton firm under fire from AG’s office

Miami /
Apr.April 03, 2013 02:00 PM

Palm Beach County homeowners filed a lawsuit last week against Boca Raton-based Fidelity Land Trust, the Palm Beach Post reported. The suit claims that Fidelity duped them into signing up for a program that they thought would help reduce their mortgage balance but instead ended up costing them their million-dollar home.

Kenneth and Joycelin Morgan, who appear to live at 6805 Long Leaf Drive, in Parkland, also say they paid thousands in fees under the shoddy program.

The suit is a bid by the Morgans to join an attorney general’s complaint filed in Broward County in September. Since Fidelity Land Trust opened in December 2011, around 100 Palm Beach County homeowners have signed deeds over to the company, the Post said. Real estate attorneys told the Post they expect more Fidelity customers to try to join the AG’s suit.

The attorney general’s complaint asserts that land trusts charged an advance fee, wrongfully guaranteed they could cancel the homeowner’s mortgage and wrongly told homeowners they could void their mortgage through a quiet title action.

Judges in federal and circuit court have already condemned Fidelity’s actions.

“I think, beyond a doubt, that these actions were false, and they were frivolous, and you’re trying to take advantage of unsuspecting homeowners in Florida,” said Palm Beach County Judge Meenu Sasser said in a January hearing, per the Post.

A spokesperson for Fidelity said it was working to refund fees for homeowners who felt they had been wrongly-charged, but could not do so because its assets were frozen after the AG’s complaint was filed. [Palm Beach Post] –Evan Bleier


Related Articles

arrow_forward_ios
Florida AG Pam Bondi
Florida AG sues Boca debt relief firm
Florida AG sues Boca debt relief firm
Eric Schneiderman gets serious about mortgage investigation
Eric Schneiderman gets serious about mortgage investigation
Eric Schneiderman gets serious about mortgage investigation
Placeholder image
Florida AG joins national foreclosure probe
Florida AG joins national foreclosure probe
Placeholder image
State AG goes after timeshare reseller, seeking permanent injunction
State AG goes after timeshare reseller, seeking permanent injunction
Placeholder image
Keeping an eye out for scams
Keeping an eye out for scams
Placeholder image
Shredded papers found in wake of mortgage investigation
Shredded papers found in wake of mortgage investigation
Tunnel could sink on shelter ruling
Tunnel could sink on shelter ruling
Tunnel could sink on shelter ruling
State attorney general sues Miami firms
State attorney general sues Miami firms
State attorney general sues Miami firms
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...