DREAMS FORECLOSED: The Rampant Theft of Americans' Homes

DREAMS FORECLOSED: The Rampant Theft of Americans’ Homes Through Equity-stripping Foreclosure “Rescue” Scams
the couple a few thousand dollars. (Client) would make a monthly payment of $1,800 for a
year, and then the loan could be refinanced and more affordable payments would follow. The
client was under the assumption that the investor would become his new lender and that he
would no longer owe (his original mortgage company).
“The day before the sale date of his home (client) was asked to go to the law offices of
(attorney) in Newport News, Virginia to sign paperwork to stop the foreclosure of his home.
(Client) and his wife never met with an attorney but were given a deed of gift to sign, by a
secretary. They signed without fully understanding what a deed of gift was. He actually thought
it was a promissory note.
“The next day a check for $16,000 was sent to (the original mortgage company). The
check was made out to the client and his wife and the memo noted that the check was for down
payment assistance and purchase of the property. The clients stated that they never were given
the check and they never endorsed the check. (Mortgage company) used the check to bring the
mortgage current and assisted the clients with a loan modification to improve their current
interest rate. At this point (client) understood that he still had a mortgage loan with (mortgage
company) and was not sure what (the “rescue” firm) had done.
“It was not until March when the client contacted HOME that he understood the impact
of the deed of gift. (“Rescue” firm) put a for sale sign in his yard. He contacted (“rescue” firm )
and was told that he had not made any payments on his loan and (“rescue” firm) was going to
sell his property. He was threatened not to take the (for sale) sign out of his yard and not to
contact a lawyer. (Client) did not want our agency to contact (“rescue” firm) because he was
scared he would lose his home. We have referred him for legal assistance and are trying to
support him with additional resources.”
HOME’s Paula Sherman adds that this client told her “I’d have never sold my house
for $16,000.” Sherman believes the home is worth about 15 times that amount, or $235,000.
Now, she told NCLC in April, “this guy (from the “rescue” firm) is forcing the sale of the
property and threatening my client daily; telling him ‘if any agency contacts me I know judges,
I know lawyers, I know state troopers.’ My client is paralyzed with fear.”
XVlll. WASHINGTON:
"The whole thing was set up to fail"
Seattle attorney Melissa Huelsman says she's filed four lawsuits in foreclosure
“rescue” cases and is planning several others.
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