Florida real estate was hit especially hard by the recent recession. Many residents found themselves with mortgage payments that they were unable to pay or owing more on their homes than they were worth. Some of those facing foreclosure felt that they had no option other than to seek a loan modification as they worked to stay in their houses. Many who sought a loan modification ended up becoming victims of scams and now wish that they had filed for bankruptcy instead. One such scam that began after the economic collapse of 2008 has resulted in jail time for its "ringleader."
According to reports, the Florida man and his cohorts in the scheme promised homeowners loan modifications that they apparently never intended to provide. They went as far as to collect payments from the struggling homeowners that were to go toward the allegedly approved loan modifications. A Florida court has found that the company's actions were fraudulent.