Maryland Foreclosure Rescue Group Facing Civil Suits In Alleged Equity Stripping Scam

A real estate group is facing charges of equity stripping in connection with the so-called "foreclosure rescue" sale and leaseback of homes of several Maryland homeowners, according to allegations set forth in three civil lawsuits filed by the homeowers. The following defendants are named in one or more of the lawsuits which accuse them either of (1) taking unfair and illegal advantage of the financially strapped homeowners involved, or (2) playing some part in assisting the foreclsoure rescue operator to carry out the alleged "rescue" scheme:

• Harry L. Borden, National Investors Realty Management, LLC, Dale Ross, Pioneer Realty, Inc., Michael Yette, MJ Investors, Realty Executives Main Street USA, John J. Harrison, John J. Harrison Company, Inc., Relocation Management, LLC, Joshua J. Harrison, bankruptcy attorney John D. Burns, Esq., The Burns Law Firm, LLC, real estate agent Jeannette Gray and Title 2000, LLC.

• Mortgage lenders Resource Mortgage, Lehman Brothers Bank, FSB, and Aurora Loan Services, who provided the mortgage financing as part of two of the foreclosure rescue transactions, were also named as defendants.

In one case, Hurley vs. Borden, et al., et al., the homeowners allegedly had $316,322.89 in equity in their home, yet they only received $37,968.00 for their equity at settlement of the "foreclosure rescue," equity stripping transaction (see First Amended Complaint - page 20, paragraph 29).

In the second case, Tillery vs. Borden, et al., the homeowners allegedly had $185,631.21 in equity in their home, yet they only received $25,143.83 for their equity (see Complaint - page 23, paragraph 28).

In the third case, Mackall v. Yette, et al., the homeowners allegedly had at least $117,000 in equity in their home, yet received absolutely nothing for their equity (see Complaint - page 14 paragraph 24).

The homeowners are seeking to void the title transfers and void the mortgages placed on their homes in the equity stripping transaction, as well as seeking actual damages and significant punitive damages.

Representing the homeowners in each of the three cases is attorney Stan Brown, of Largo, Maryland. Go here and go here for more on Stan Brown.

For the longer version of this post, see Another Maryland Foreclosure Rescue Group Facing Civil Lawsuits.

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).