Wisconsin Homeowner In Battle With Foreclosure Rescue Operator To Keep Home

In Wisconsin, the Milwaukee Journal Sentinel reports the story of one financially distressed homeowner (and his wife and four children) who has found himself embroiled in multiple court battles to stave off eviction in connection with a foreclosure rescue transaction he entered into with James A. Black, a Milwaukee police officer (who reportedly does foreclosure rescue as a sideline) and Patrick Blair, Black's investor partner, in an attempt to save his home of 17 years from foreclosure. According to the story:

• "[The homeowner] said Black bought his house for the price of his outstanding mortgage with the option for [the homeowner] to buy it back within three years - for $4,000 more than investment costs the first year, $6,000 more the second year and $8,000 more the third year. Things soured quickly. Black has twice tried and twice failed to evict Bularz for allegedly late rent payments."

Highlights from the story, as reported by the Journal Sentinel:

(1) The foreclosure rescue proposal from Officer Black appeared to be the best from a swarm of investors promising to save the homeowner from foreclosure.

(2) Officer Black may have used his status as a cop to "grease the wheels" in his attempt to make the deal and to get possession of the property. Reportedly in one instance, according to the homeowner, in attempting to make the deal in the first place, Black told him "You can trust me. I'm a police officer and want to help you."

(3) After a deterioration in the relationship based on an alleged failure to pay rent and a prior eviction attempt, the homeowner videotaped himself giving a check for the May, 2006 rent to Officer Black's partner, Blair, and getting a receipt. Quoting from the story:

• "[The homeowner] testified in a May 30 eviction hearing in Waukesha County Circuit Court that it was the second time he had paid May's rent. Black denied getting an earlier payment. Realizing that accepting a check might void the eviction effort, however, Black and Blair tried to undo the videotaped transaction, according to court testimony. Blair called the Waukesha County Sheriff's Department for help, and a deputy told [the homeowner] to return the rent receipt to Blair."

Reportedly, Black had identified himself to the deputy as a Milwaukee police officer.

(5) The homeowner ultimately prevailed in the eviction proceeding, the second eviction attempt made by Black and Blair. The judge dismissed the eviction lawsuit, ruling that homeowner's videotaped payment was made before the expiration of a five-day grace period after an eviction notice.

(6) The homeowner's attorney now says that Officer Black has given notice that a third eviction action is possible over the homeowner's alleged failure to make house repairs. The homeowner has a claim of retaliatory eviction pending against Black.

Other Points:

(7) Wisconsin state Sen. Jim Sullivan is reportedly drafting a law in Wisconsin to regulate foreclosure rescue operators.

(8) Catey Doyle, chief staff attorney at Legal Aid Society of Milwaukee, said her office is awash in homeowner complaints that foreclosure rescuers ripped them off.

For more, see From foreclosure fire into eviction frying pan (Desperate homeowners are targets of buyback plans).