Lenders continue to experience a large number of loan defaults. After all, the economy has been in an extended period of “recovery” and many homeowners are unable to repay their loans.
Facing the possibility of foreclosure is a scary experience. Many borrowers are panic stricken and gripped by fear and may become increasingly vulnerable to promises and solutions from companies offering impractical solutions that do not include working directly with the lender holding the defaulting loan.
For example, Bella Homes, LLC, a company with an Atlanta presence, is being sued for its ‘foreclosure rescue’ practices. Allegedly, Bella Homes, LLC (“the Company”) would convince homeowners to convey the title to their homes to the Company and thereafter the homeowners would rent or lease their homes from the Company. The Company promised homeowners they would retain an exclusive option to buy back their homes.
The lawsuit alleges that the Company never assumed the mortgages for the properties on which they collected rents and the money never made it to the homeowners’ lenders.
This alleged fraudulent scheme to prey on desperate homeowners indicates a risk for lenders, as well, as the lenders try to resolve defaulting mortgage accounts.
Have you seen anything like this occurring in your area or have you been solicited for similar practices?