608 Mabry Hood Road, Suite 202 | Knoxville, Tennessee 37932
Avoiding scams during debt management efforts
The fear of losing one’s home is a serious matter for Tennessee residents who are facing ongoing debt issues. Often, individuals or families have saved for many years to afford a home of their own. Once that goal has been reached, the house becomes a significant source of pride. Facing the risk of foreclosure can be extremely distressing, and can lead many reasonable people to follow a debt management path that leads directly toward a scam.
Unfortunately, there are plenty of individuals in the world who look to profit from the misfortune of others. An example is found in the case of three people who were recently sentenced for their roles in defrauding distressed homeowners. The three were part of a company known as Star Reliable Mortgage. They offered to assist homeowners through a “loan elimination” program.
Clients of Star Mortgage paid upfront for services, at a cost of between $2,500 and $4,500. In return, the company offered to assist the clients in owning their home “free and clear.” In reality, what the three individuals did was go down to county offices and file fraudulent documents pertaining to the homes. They were attempting to replace the trustees of the properties with fake trusts. That effort was intended to stall the foreclosure process, an act that is known as “clouding the title.”
One of the men was convicted of conspiracy and mail fraud. The other two pleaded guilty regarding charges of conspiracy to commit mail fraud. Their sentences range from nearly three years in prison to nine years in prison.
They are also ordered to pay restitution of more than $1.1 million to the people that were scammed and to Freddie Mac and Fannie Mae, which held many of the loans. Tennessee homeowners who are considering various debt management programs should carefully evaluate any offer of assistance before signing on the dotted line. While there are many programs that offer legitimate services, there are also many scams.
Source: recorderonline.com, “Three sentenced in foreclosure rescue scam“, July 26, 2017
Thank you. Your submission has been sent.
608 Mabry Hood Road, Suite 202
Knoxville, Tennessee 37932
William E. Maddox, Jr. LLC, Attorney at Law is located in Knoxville, TN and serves clients in and around Knoxville, Oak Ridge, Louisville and Anderson County.
Attorney Advertising. This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. [ Site Map ]
Martindale-Hubbell and martindale.com are registered trademarks; AV, BV, AV Preeminent and BV Distinguished are registered certification marks; Lawyers.com and the Martindale-Hubbell Peer Review Rated Icon are service marks; and Martindale-Hubbell Peer Review Ratings are trademarks of MH Sub I, LLC, used under license. Other products and services may be trademarks or registered trademarks of their respective companies. Copyright © 2021 MH Sub I, LLC. All rights reserved.