Affordable Housing and Tax Credit Developments in DelawareDelaware Foreclosure Rescue Scam Uncovered by Beau Biden

March 3, 2011by George Danneman

Delaware Attorney General Beau Biden announced a 21-count indictment against Master Builders for Christ, Vision Builders Christian Center and three individual defendants on charges of running a massive foreclosure rescue scam.  The indictment alleges that the defendants preyed on distressed homeowners at risk of losing their homes and induced them to enter into fraudulent sale/lease-back deals.

In this scheme, the scammer offers to pay the mortgage by purchasing the house from the homeowner while leasing it back to them in the belief that they will have the opportunity to re-purchase the house when they are financially stable.  In reality, title to the property is transferred to the scammer, while the homeowner is still responsible for the mortgage.  The scammer increases the rent to the point that it is unaffordable for the homeowner.  The  scheme basically eliminates the equity value of the property and makes it impossible for the homeowner to repurchase.

Those who take advantage of vulnerable homeowners under extreme financial duress or facing foreclosure should be on notice,” Attorney General Beau Biden stated. “We will track you down, prosecute you, and put you behind bars.”

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