Virginia Homeowner Files Suit Against Foreclosure Rescue Operator To Void Sale Leaseback

The Virginian-Pilot reports that a Portsmouth, Virginia homeowner has filed a lawsuit in state court against CFF Properties in connection with a foreclosure rescue transaction in which reportedly, she unwittingly signed over title to her home in foreclosure for $100 and received in exchange an agreement to rent back the home with an option to buy it back in the future. She only found out that she was no longer the owner when she asked the city earlier this year to replace a broken trash bin, she told The Virginian-Pilot. According to the story, the lawsuit claims that the homeowner had over $170,000 in equity at the time of the transaction.

Chuck Brinkman, an officer of CFF Properties, denied the allegations in the homeowner's lawsuit.

In her suit, the homeowner claims to have been defrauded by CFF and seeks to have the arrangement voided. The suit asks for actual damages of $173,110 for equity she had in the house as well as punitive damages. Representing the homeowner is attorney Tanya Bullock of Virginia Beach.

For all the details, see more, see Foreclosure-rescue deals snag troubled homeowners.

Go here for other posts on foreclosure rescue cases handled by Tanya Bullock.

Editorial Note

The imposition of punitive damages on a foreclosure rescue operator by a court is not unheard of (and I suspect will become quite common). See, for example:

• Prince George's County Circuit Court awards $500K to victim,
• Foreclosure Rescue Victim Wins $3.3+ Million Verdict Against Operator