DC Homeowner Gets Back Home Lost In "Foreclosure Rescue Swindle"

The Ocala Star Banner reports:

• Walter Malone got lucky. Days before his house was to be sold at foreclosure, Malone signed papers he thought would help him keep his home. It was a scam. But instead of losing his house, he became a plaintiff in a lawsuit against the men operating the foreclosure rescue swindle. A settlement for an undisclosed sum allowed Malone to win back his home, a rare victory in the battle against such schemes. Malone, who is 72 and lives within two miles of the U.S. Capitol, told his story [last] Wednesday to the Senate Special Committee on Aging, which studies issues of interest to seniors.

• The panel heard ideas for how best to prevent foreclosure rescue scams, in which unwitting homeowners are turned into renters in their own homes. Such scams disproportionately affect seniors and minorities."The elderly and people of color have a bull's-eye on their back, regrettably," Thomas E. Perez, secretary of the Maryland Department of Labor, Licensing and Regulation, told the Senate panel.

For more, see Victims of foreclosure rescue scams testify (Senate panel ponders swindlers targeting elderly, minorities) (if link expires, try here).

For background information on foreclosure rescue scams, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams.