Calif. prosecutors indict 19 in mortgage fraud scheme

[FreakinDJ]

Source: Associated Press

SACRAMENTO -- Federal prosecutors on Monday announced indictments in a mortgage scheme they say victimized more than 100 homeowners and siphoned off nearly $13 million in home equity.

Dozens of people in California and elsewhere lost their homes in the scam, which prosecutors said was led by Charles Head of La Habra. He and 18 others face allegations that they preyed on homeowners who were struggling to make payments on adjustable-rate and other mortgages.

Under the scam, homeowners facing foreclosure were promised lower house payments and even cash upfront to help pay bills if they agreed to add another name to their home's title, prosecutors said. The victims were led to believe they were paying rent to the investor while they got their finances back in order, prosecutors added.

According to the unsealed indictments, Head and the others actually used the scheme to switch the names on the titles, take control of the homes, refinance them and walk away with whatever equity homeowners had built up.

Read more: http://www.sacbee.com/114/story/808306.html

[acmavm]

1. And the predators always come out when tragedy and disaster strike

the poor and the middle classes.

There should be special prisons for these people.

[Robbien]

2. It seems every day there is a report of someone being indicted for predatory activities

in subprime mortgages. Yesterday there was an article about a team of eight people who were indicted for filing fraudulent mortgage apps, keeping the money and leaving the unlucky borrowers loaded down with huge mortgages for which they received no benefit, nada.

Just think how many indictments there would be if we had a fully staffed DoJ not filled with Gonzo-fied USAs.