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CALIFORNIA | SOUTHLAND FOCUS

State Seeks Fine Against Real Estate Firm

May 21, 1999|Edmund Sanders

State regulators are seeking a $1-million fine against El Monte-based Federal Housing Relief Inc., a real estate company that allegedly offered to help financially strapped homeowners protect their credit records by taking over their properties before a foreclosure. State Atty. Gen. Bill Lockyer filed a lawsuit Wednesday in Los Angeles County Superior Court, claiming the company falsely told homeowners that they could protect their credit by selling their homes to Federal Housing, in some cases for $1. Though the homeowners no longer owned their properties, according to the state they were still liable for repaying the mortgage and their credit records were still damaged by the foreclosure. Company officials could not be reached for comment.

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