TRENTON — A homeowner in Woodbine, desperate to avoid foreclosure, was among nearly 50 throughout the state that were preyed on by deceptive mortgage loan providers.
In two separate but related lawsuits, state Attorney General Anne Milgram is charging eight corporations and 29 individuals with consumer fraud and civil racketeering for using predatory “foreclosure rescue” schemes to persuade those homeowners to sign over their properties.
Names and addresses of all victims were kept confidential by the Attorney General’s Office.
The state alleges that the defendants convinced the homeowners to surrender their homes to third-party buyers as part of complex “sale/lease-back” transactions, according to a release.
Homeowners were told that, by signing over their property titles to third-party buyers, they would be able to still live in their homes as renters while repairing damaged credit, and then, in the future, buy back their dwellings, the release stated.
According to Milgram, that didn’t happen.
Instead, the schemes involved the theft of at least $3 million in homeowner equity from 48 properties in 14 counties as well as $13.5 million in fraudulently obtained loans, $4 million of which are in default.
The conduct is alleged to have taken place between 2004 and early 2008.
According to Lee Moore, a spokesman from the Attorney General’s office, approximately $82,000 worth of equity was stolen from the property in Woodbine and $220,000 in fraudulent loans was obtained and is in default.
“The conduct charged in these lawsuits is unconscionable. These defendants preyed on people who were facing foreclosure and searching for a lifeline that would enable them to get back on their feet and remain in their homes,” Milgram said in a release.
“Having placed their hope and trust in these defendants, victims ended up far worse off than they were before. It is critical that we root out this kind of fraud and protect consumers who go seeking help from finding complete financial ruin instead.”
Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com
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