Karen Grun

Florida Bar Continues Crackdown On Attorney/Mod Company Partnerships

By Diane C. Lade, South Florida Sun Sentinel

 A Coral Springs lawyer is being investigated by the Florida Bar Association for her involvement with a South Florida foreclosure rescue company, as trade regulators continue to file actions against attorneys involved in similar operations.

Bar officials confirmed they are investigating Karen Grun and her ties to Housing Assistance Law Center, of Deerfield Beach. The Florida Attorney General’s Office filed legal action against the company and three afilliates in July, claiming they illegally took payments in advance and, in some cases, guaranteed a mortgage could be modified in 30 to 60 days.

The bar has increasingly scrutinized partnerships between lawyers and foreclosure rescue firms, concerned the relationships were forged to skirt state laws barring upfront fees for loan modification work. The professional association, which monitors and disciplines lawyers, opened 195 cases regarding foreclosure rescue practices this year

“They’ve really put a lot of heat on attorneys who were doing this,” said Susan Spurgeon, a Tampa real estate lawyer who has lectured on mortgage modification.

Grun did not return phone messages the Sun Sentinel left at her home and office.

Aventura real estate lawyer Daniel Henry Fox was disbarred, following an investigation, in October after he allegedly? abandonned some of his residential loan modification clients. His office phone has been disconnected and an e-mail from the Sun Sentinel was not returned.

Grun’s name and the phrase “a private law firm” were on Housing Assistance Law Center documents, and state corporate records listed her as the center’s director/president from April through June. Housing Assistance since has been dissolved and it’s telephone number has been disconnected. (Read more)