California Foreclosure Rescue Operator Faces Felony Charges
According to county prosecutor William Atkinson, a grant deed turning over ownership of the home to Bernot was among the paperwork he had the homeowner sign; he also refinanced the property with a loan large enough to pay off the existing mortgage and to allow him to pocket $90,000.
The criminal charges allege violations of what is long standing California law (passed in 1979) regarding equity purchasers (Section 1695 - 1695.17, Cal. Civ. Code) and foreclosure consultants (Section 2945 - 2945.11, Cal. Civ. Code).
After being victimized, the homeowner retained the assistance of Soquel attorney Bill Purdy, who filed a notice of rescission (possibly a Federal Truth In Lending claim here; the article doesn't say) on her behalf in April 2005 and is representing the homeowner in a civil lawsuit against Bernot. Reportedly, Bernot trnsferred title to the home back to the victim in March of this year. (Inasmuch as it wasn't until May of this year that Bernot was charged criminally for conduct that took place three years ago, I suspect that it may have been the civil lawsuit -- and the facts that may have come out of it -- that possibly served as the impetus for the criminal action by the local prosecutor.)
For more, see Santa Cruz resident says her home was stolen in foreclosure scam (no longer available online).
Go here for more on attorney William Purdy.
Go here for more on Leonard Bernot.
Go here for more posts on homeowners who have refinanced into bad mortgage loans and are now using the Federal TILA to try and undo the bad loans. undo mortgage loans TILA alpha
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