NYC Equity Stripping, Foreclosure Rescue Scam Has Happy Ending For Victimized Homeowner

In New York City, National Public Radio reports on the story of Gloria Johnson, a homeowner in the Bushwick section of Brooklyn who was allegedly scammed out of her home equity by foreclosure rescue operator Home Savers Consulting Corp.

Unlike many of these stories, this one had a happy ending for Ms. Johnson. Jessica Attie, Ms. Johnson's lawyer and one of the co-directors of the Foreclosure Prevention Project [at South Brooklyn Legal Services], filed suit against Home Savers, challenging the bona fides of the transaction. Reportedly, Home Savers got scared and sent Johnson back her money and the deed, after which Attie arranged with a legitimate bank to refinance Johnson's house, cutting her mortgage payments in half.

For more, see Housing Pros Seen Working Foreclosure Scams.

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To read the facts of the case, as alleged in the victimized homeowners lawsuit, see Complaint - Johnson vs. Home Savers Consulting Corp., Phil Simon, et al.

Go here for other posts on New York City-area foreclosure rescue operator, Home Savers Consulting Corp.

Go here for criminal prosecutions of foreclosure rescue operators.

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