Hawaii Homeowner Fighting Back To Keep Home Unwittingly Signed Away In Foreclosure Rescue Deal

In Ewa Beach, Hawaii, the Star Bulletin reports on a local homeowner's experience with being allegedly ripped off of over $160,000 in a foreclosure rescue sale leaseback arrangement that she said was described to her as a refinance. According to the story, she and her husband signed the papers presented to her by the operator because they trusted her and she seemed very nice. The story also reports on her experience trying to find a lawyer to help her family:

• The lawyers [the homeowner] called wanted "a couple of thousand dollars upfront" -- money she did not have. A nonprofit group she approached was overwhelmed with cases and could not help for a month. Her last call was to the Legal Aid Society [of Hawaii], which provides legal services to the needy. "I was so happy when they said they would help me," she said.

• The society has twice managed to stave off eviction. It is representing [the homeowner] and her relatives in a Circuit Court suit to reclaim title to their home, alleging deception, misrepresentation, fraud, conspiracy, negligence, unauthorized practice as a mortgage broker and violations of notary public law. "When somebody steals your wallet, you can get arrested and charged for theft," [executive director of the Legal Aid Society of Hawaii Chuck] Greenfield said. "When somebody steals your house, it's not a criminal act. In Hawaii you have to locate an attorney and pursue your case in civil court."

For more, see Family needs legal help to save home.

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