Foreclosure Rescue Scams in Arizona Facing Legal Charges

Posted on April 29, 2009
Filed Under Foreclosure Homes | Leave a Comment

Foreclosure rescue scams in Arizona are increasing and are now facing legal charges.

Terry Goddard, the Attorney General has brought legal charges against a particular scam operator who has cheated nearly 400 residents of Arizona from their houses. Goddard has accused Richard Winer (33) of Tempe to have preyed upon borrowers facing foreclosures with false promises about helping them to stay in their residences while limited liability firms would be taking care of their financial problems.

From 2003 to 2007 Goddard targeted potential victims by hunting up public records of those who were defaulting and facing auction sales. His agents approached the borrowers saying that they specialized in dealing with distressed properties and would “stop foreclosure within 24 hours.”

Persuasive talkers, this slick gang would make the struggling victims deed off their homes to Winer. Winer would be taking over charge of their monthly payments and clear all balance dues. In return for these invaluable services the homeowners had to pay a fee to Winer. The amount equated roughly to what they were paying for the mortgage. This time they would be staying on as tenants.

The Attorney General’s office said that this was all done under cover without in any way intimating the lender or the mortgage servicer about deed transfer.
The owners who overnight became tenants had the alternative to either buy back the house from Winer within a year after paying a fee of $15,000 if of course they complied with all the terms of the agreement. If any of these were violated then the house would be sold within two weeks to other investors. Even one rental default would land them in trouble. Their option of repurchasing the house would become null and avoid. They would have to immediately vacate the premises.

The lawsuit alleges that the houses that were thus obtained by unfair means were resold within two weeks to those who paid commissions to Winer. None of the owners who had overnight become renters could buy back their houses. The latter were sold at full market value.

The charges against Winer include violation of many state laws inclusive of Arizona Consumer Fraud Act and Arizona Debt Management Companies Act. They falsely represented themselves saying they would save the house whereas in reality they did nothing. They misled the borrowers with false mortgage schemes and transgressed the Federal Truth in Lending Act (TILA).

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