If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Desperate people tend to make desperate mistakes. This will bring out the worst in some people as has happened with a foreclosure rescue scam in San Diego.

5 people were arrested including the ringleaders William Hutchings and Xiaoke Li in a foreclosure scam that affected 400 mainly Hispanic families. What happened is that they offered to repay the mortgage in arrears and charge the families that were being foreclosed upon rent. Instead they took the rents and never paid the mortgage or fees. The homes got foreclosed upon and the scammers left in the night.

The FBI busted up the ring and now these folks are looking at a few years in jail. Good Riddance.

There are honest folks working the foreclosure markets, making legitimate offers to buy out people in desperate situations. The scam artists are the ones making things even harder on those who need help.

It was promoted to struggling, mostly Hispanic homeowners as a way to beat foreclosure. But prosecutors say it turned out to be a gigantic scam that tricked 400 property owners into paying fees and rents to a San Diego-based group that did nothing to prevent lenders from taking back their homes.
Police recently arrested four San Diegans and have issued an arrest warrant for a fifth suspect in connection with the foreclosure rescue scheme, prosecutors said yesterday. The suspects face more than 100 felony charges of conspiracy, grand theft and deceitful practices as foreclosure consultants.
Prosecutors estimate that combined losses for victims total hundreds of thousands of dollars.  via SignOnSanDiego.com

Related posts:

1. Foreclosure Rescue Scheme Banned In Massachusetts
2. Massachusetts Mortgage Rescue Scam Advice
3. More on Mortgage Rescue Fraud
4. Irony Alert: USC Real Estate Finance Professor Busted For Real Estate Scam
5. Cash Out Refinancing Leads To Massachusetts Foreclosure Surge