Thursday, July 26, 2007

Michigan Couple Loses Home In Equity Stripping Scam

In Royal Oak, Michigan, The Daily Tribune reports that a local couple face eviction from their home as a result of a bank foreclosure on their home.

Reportedly, their trouble started in 2004 when they sought to obtain a $10,300 home equity loan to pay off back taxes. According to the story, they were referred to Hispanic Financial Group, Inc., and its agent, Gustavo Aguilar, in April 2004, who not only paid the outstanding taxes but also slipped a purchase agreement into the paperwork and recorded an affidavit of interest against the property for $82,000. When all the dust settled, the couple say they unknowingly sold their house to the lender's accomplice without receiving a penny from the sale, and the lender walked away with a forged check for $33,000 cashed at LaSalle Bank. (LaSalle Bank subsequently repaid the money to the homeowner.) The accomplice ultimately let the house go into foreclosure and it was acquired by U.S. Bank.

The Edwards family tried to get their house back in Oakland County Circuit Court. They claimed the mortgage was defective because it was obtained through a fraudulent transaction so U.S. Bank wasn't a bona fide purchaser. However, the judge ruled in April there isn't enough evidence to support the homewowners' claims and U.S. Bank is the rightful owner of the property. For more, see Couple faces eviction again (They lack funds to buy back house lost in shady deal).

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