Operating under the name American Foreclosure Group LLC, Randall Webb promised to negotiate with lenders for strapped homeowners in exchange for a $600 to $700 fee. Instead, he filed bankruptcy on behalf of clients, sometimes without their knowledge or consent.
Gregory G. Lockhart, U.S. Attorney for the Southern District of Ohio, said that Webb’s business was similar to other foreclosure-rescue scams that promise desperate homeowners help but instead pocket upfront fees.
Instead, homeowners are better off discussing their situation with a lawyer versed in both bankruptcy and foreclosure.
“Scams like this prey on people when they are most vulnerable,” he said.
Prosecutors say Webb did little for his distressed customers and, in at least one case, pocketed money from a client that was intended to fund a new payment plan.
Re: “Take for instance a loan they gave to a client who refinanced for $50,000 cash out. The broker ended up getting paid $22,000 and the borrower received $6,000 after all the fees and penalties.”
Well, that’s because the broker did tons of work researching the best loan options, checking the financials of the borrower, counseling the borrower, educating the borrower, verifying the information in the application, and such. All that borrower had to do was sign a few pieces of paper.
- Paul
(Yes that was sarcasm in case text didn’t convey it)
Of course there’s $22k of unaccounted for funds in Schumer’s example… so the borrower prolly had his credit cards paid off… or another loan paid off. When politicians use examples, they should verify that it really is a poster boy for the cause their promoting. Without the real details, this could go either way.
- Paul
typo… “their” shoulda been “they’re”
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krimutinok 63 post
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please I need help after many frauds my broker made to my morgage now she send me to forclosure please help me before 3/20/2008 at chester county PA I need justice she offer me money in the side to move out I said no now on 10/04/2007 she send me a foreclosure letter my phone #484 786 8562
Probably felt the amount of research they spent determining the maximum yield spread premium they could earn was justification enough for pocketing it..
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