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Homeowners say frozen land trusts still active

Two South Florida homeowners filed lawsuits this month following a state attorney general complaint that alleges Fidelity Land Trust and affiliate companies defrauded homeowners in a foreclosure rescue scheme, the Palm Beach Post reported.

The complaint says the land trusts defrauded hundreds of property owners statewide, according to the Post.

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The homeowners say they continued to have money withdrawn from their bank accounts despite an injunction that froze Fidelity Land Trust’s assets and operations, the paper reported.

Asking for as much as several thousand dollars upfront, the complaint alleges the companies deceived homeowners into signing over their deeds on the promise that their underwater mortgages would be canceled and they would be allowed to keep their homes, the Post said. [Palm Beach Post] —Emily Schmall

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