A foreclosure rescue scheme takes advantage of vulnerable homeowners who risk the loss of their home through foreclosure.
The “rescue” involves a manipulated deed process, payment of significant up-front fees, use of a straw buyer/borrower, and false promises that the homeowner may occupy the home as a tenant, during which time the homeowner can get his or her finances in order. The homeowner is also given the right to purchase the home back from perpetrator at an exorbitant price. In the meantime, the perpetrator refinances the property at an inflated value and pockets the equity, commonly referred to as equity-stripping.
The straw buyer who generally received only a modest fee for participating in the fraud subsequently defaults on the loan, and the original homeowner is evicted and loses the home and any remaining equity. There are many variations on the foreclosure rescue scheme. All end up with the same result: The homeowner loses his or her home and generally his or her equity.
Information on the Monroe County State Attorney’s Office website is for informational purposes only.
It should not be used as or be construed as legal advice. Contact an attorney if you have a legal issue.