66 East Main Street, 3rd Floor Little Falls, NJ 07424

Foreclosure Rescue Scheme

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Background:

  • Conspirators used 3rd parties to contact homeowners facing foreclosure.
  • Offered homeowners an opportunity to get out of their current loans and receive a new loan with reduced interest rates.
  • Falsely represented to homeowners that they had “investors” ready to quickly purchase their homes from the current lenders through a short sale process.
  • Phony closings were held, homeowners provided a down payment to conspirators and told to ignore late notices from existing lenders.

Outcome:

  • 70 homeowners fell for this scam and paid a total of $242,000.
  • Conspirators sentenced from 15 – 41 months in prison. Other conspirator is set to be sentenced and one pleaded guilty to mail fraud.

Many times, short sales serve no purpose or do not convey any benefit to my clients.

Always consult with a Certified Bankruptcy Attorney when you are facing foreclosure to see the best option for you.