DREAMS FORECLOSED: The Rampant Theft of Americans' Homes

DREAMS FORECLOSED: The Rampant Theft of Americans’ Homes Through Equity-stripping Foreclosure “Rescue” Scams
That could be because of the lawsuit’s allegation that the scheme relied on forged
documents and fraudulently obtained mortgage loans to business associates that enabled the
defendants to strip equity from the homes.
Another Hatch case alleging a scam by a single operator involving some 75 homes is
still to be decided.
In late 2003 Hatch filed suit against Hendrie Grant and Grant Holdings. At that time his
office obtained both a temporary injunction shutting down Grant’s business and appointment of
a special master to resolve disputes over existing properties in Grant’s portfolio.
Grant’s attorney told Minnesota Public Radio that all of his client’s deals are legal.
Trial of the case was set to begin the second week of May.
St. Paul lawyer John M. Tancabel says he has “commenced several suits here in
Minneapolis/St. Paul against scammers who approach persons in foreclosure.... My overall
view is that these scams work because (a) there is an unscrupulous scammer, (b) a desperate
and ignorant homeowner who wants to believe that they will be rescued from the brink by the
scammer.
“The ‘wanting to believe’ is powerful and can cause ordinarily cautious people to
ignore warning signs,” Tancabel says. “Many of the scammers are bold. If you don't respond to
their letters, they will ring the homeowner's door bell, introduce themselves, and try to invite
themselves in.
“Scammers market their ‘business’ the following ways:
“1. Informing loan brokers that if they refer homeowners in foreclosure to them, they
will be paid a referral fee.
“2. Writing (or visiting) a homeowner or employing a ‘bird dog’ i.e., a realtor, who
obtains the trust of the homeowner and talks them into the transaction.”
Leah Weaver of the Legal Aid Society of Minneapolis sent along a suit now being
litigated in federal court where a Hmong immigrant family was allegedly victimized. Weaver
says the broker who set this deal up is a repeat player in foreclosure “rescue” scams; Weaver’s
colleague Kevin Reuther says this broker has previously consented to revocation of his real
estate and mortgage originators’ licenses by the state Commerce Department.
“We're told that since he can't be involved in any real estate business he's now running
classes that teach others how to set them up,” says Weaver. “I've seen ads for this sort of thing
in a local free weekly. They have titles like ‘Fire your boss! Become a real estate investor like
Trump!’"
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