11 people were charged by a federal grand jury in what they say was an attempt to defraud homeowners in foreclosure by making false claims that they were going to negotiate their mortgage by buying their notes and short selling the house back to them at a discount. They were also claiming to keep homeowners facing an auction date out of foreclosure.
Foreclosure Scams in the Making
The tactics used were finding information on public records to determine who were financially shaken and vulnerable. Typically looking for Lis Pendens or a Final Judgement was the way to go for these tricksters.
Multi Level marketing schemes were used to recruit those who werte to seek out distressed homeowners in foreclosure. The companies that hired the recruits reinforced being aggressive in finding and searching for homeowners facing foreclosure.
22,000 postcards were mailed out. The postcards promised to “stop foreclosure” or “stop the sheriff sale” for a fixed price. Lots of attorneys already do this and been found guilty of fraud. No one can guarantee that your foreclosure will be stopped. Only a judge that grants an order to extend or cancel the foreclosure sale can assure you that it will be canceled.
Fake Foreclosure Solutions
The companies involved claimed they could buy the note from the lender, negotiating that debt at a discount and then passing along the savings to the homeowner through a short sale or deed in lieu of foreclosure. They had also promised to stop an imminent foreclosure sale, get the mortgage removed and sell back the house to the homeowner at a fraction of the price.
Watchout for Foreclosure Scams in South Florida!
If someone approaches you to do this, run the other way! Make sure to read the reviews on whoever you are going to do business with!
“These programs were fraudulent,” U.S. Attorney Ben Glassman said. “The defensants performed virtually no negotiations on behalf of the homeowners and never successfully purchased a mortgage note or provided a new, lower-cost mortgage. They never removed a mortgage lien or performed short sales as advertised.”
The indictment includes one county of conspiracy to commit mail fraud and wire fraud, four counts of mail fraud, seven counts of wire fraud, 12 counts of bankruptcy fraud, one count of bank fraud and one count of aggravated identity theft.
Who were these Foreclosure Bandits?
The indictment includes one county of conspiracy to commit mail fraud and wire fraud, four counts of mail fraud, seven counts of wire fraud, 12 counts of bankruptcy fraud, one count of bank fraud and one count of aggravated identity theft.
Eight of the 11 people indicted have been arrested, authorities said. They include Lorin K. Buckner, 62, of Hamilton, Ohio; Garrett Stevenson, 41, of Cincinnati; Damien Byrd, 40, of Norfolk, Virginia; Stacy Kay Slaughter, 58, of Gahanna, Ohio; Marcus A. Mullings Jr., 57, of Hackensack, New Jersey; Talia Marie Stephen-Millings, aka Marie Hightower, 36, of Hackensack, New Jersey; Amal Mahepaul Balmacoon, aka Martin, 37, of South Ozone Park, New York; and John Nelson, 66, of Brooklyn, New York.