Wednesday, May 23, 2007

Virginia Foreclosure Rescue Operator Targeted In Lawsuits

The Virginian-Pilot reported this week that "At least three lawsuits have been filed against mortgage company D and D Home Loans and others by people who say the broker tried to trick them out of their homes."

Virginia attorney Tanya Bullock has filed the actions on behalf of all three plaintiffs, and claims in court papers that the company's actions "expose a classic foreclosure rescue scam." The transactions involved are apparently the "sale-leaseback" variety, where the operator takes title to the home in foreclosure and promises the homeowner the chance of repurchasing it in the future.

One victim reportedly said that references to Scriptures and Christian values by D and D President Warren Mike Robinson inspired trust. Said the victim, "I'm African American. They're African American and look successful. I felt as if I was in the hands of my people."

One of the lawsuits, originally filed in a Virginia state court and subsequently removed to a Virginia Federal Court, alleges violations, makes legal claims and requests relief based on the following:

  • Equitable mortgage doctrine, Federal and state Real Estate Settlement Procedures Act, Federal Truth in Lending Act ("TILA"), Federal Home Ownership Equity Protection Act ("HOEPA"), Federal Reserve Board Regulation Z, fraud, intentional misrepresentation, and deceit, breach of contract, breach of fiduciary duty and negligence, conversion, unjust enrichment, breach of the implied covenant of good faith & fair dealing, conspiracy, constructive trust & resulting trust, several other state law claims.
For more, see Three plaintiffs say firm tried to dupe them out of homes.

(I had problems uploading the plaintiff's complaint that is currently in Federal court; if you want a copy, let me know at and I'll e-mail it to you.)

(This is an updated version of a post originally appearing on May 21, 2007.) equitable mortgage yak