Financially Strapped Orlando-Area Homeowner Unwittingly Signs Over Deed To Home In Sale Leaseback, Rescue Deal

In Orlando, Florida, a story by the Orlando Sentinel that came out in June reported on another Charles Head sale leaseback deal gone bad:

• If you're not careful, homeowner Arthur Washington warned Wednesday, your house may be the next to go. [...] Washington, 59, said he was surprised how easily he was persuaded to give up the title to his home. When he and his elderly mother moved here from Massachusetts, Washington said, he wanted the kind of house often showcased in glossy magazines. But when his mother spotted the coffee-colored three-bedroom house on Montague Place in Pine Hills, she fell in love. The pair bought the home in 2003. Then the 2004 hurricanes hit, bringing water damage and a long wait for insurance money. In early 2005, bankruptcy and foreclosure loomed briefly but were avoided. But Washington was never quite able to catch up financially.Washington, who has poor credit, found a loan he thought would help keep him afloat. A lender told Washington he would hold the title to the home if Washington paid $600 a month in rent for one year. When the year was up, Washington could refinance his home. It didn't work out that way. Instead, in 2006, the lender sold Washington's home to an investor, who was unaware of the situation. Washington is still living in the house.

• The Federal Bureau of Investigation already is looking into the actions of Charles Head, the lender who dealt with Washington. Meanwhile, Washington is searching for a lawyer to help him regain ownership of his home.

For more, see Foreclosures fly through roof, or go here for the same story.

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.).