Maryland Man Cops Plea In Sale Leaseback, Equity Stripping Ripoff That Targeted High-Equity Homeowners With Unaffordable House Payments

From the Office of the U.S. Attorney (Baltimore, Maryland):

• James William Fox II, age 40, of Crofton, Maryland, pleaded guilty [] to conspiracy to commit wire fraud in connection with a mortgage fraud scheme which promised to help homeowners facing foreclosure keep their homes, but left them with no equity and no longer holding the title to their properties.

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• According to Fox’s plea agreement, he met James Hooper Dan, age 45, of Annapolis, Maryland, when both were loan officers at a mortgage brokerage in Annapolis. Beginning in 2006, Fox began to identify prospective borrowers who owned and had equity in their homes, but who could not afford their mortgage payments and were at risk of losing their homes because they were either in foreclosure, bankruptcy or financial distress.

• Fox, and sometimes Fox and Dan, told potential victims that they could "rescue" them and save their houses. The promises involved transferring the home to Fox or Dan, who would obtain a new mortgage loan. Fox and Dan promised to make the payments on the new mortgage loan for six months or a year, during which time the individual would "repair" their credit, refinance the property and reacquire it. During this six month or one-year period, the individual was to continue living in the house.

For the entire U.S. Attorney press release, see Crofton Loan Officer Pleads Guilty to Mortgage Fraud Scheme.