Saturday, December 30, 2006

Long Island Couple Lose Home, "Skimmer" Convicted

The saga of a Long Island, New York couple who fell prey to an "equity skimmer" was the subject of extensive coverage earlier this year by the newspaper Newsday (New York), and reported at Newsday.com.

The story is pretty typical. Reportedly, the homeowners found themselves in foreclosure, went to a crooked mortgage broker to refinance their mortgage, and were told late in the loan approval process that they couldn't obtain the mortgage. They were then told by the scammer that their only hope to save their home was to sign the home over to him and then lease the home back from him until they get their finances straightened out, at which point they can buy the home back from him. The arrangement called for rent payments from the victims to the mortgage broker, with the mortgage broker then making the mortgage payments to the bank.

The mortgage broker had no problem collecting the rent, but never bothered to make the mortgage payments.

The bottom line in this story was that the mortgage broker and his confederates were convicted of grand larceny and the victimized homeowners lost their home that had been in the family for some sixty years. For the story, see:

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