Rescue and Predatory Home Mortgage Fraud
Rescue and Predatory home mortgage frauds are common. Persons claiming to be the mortgage company, government agencies and investors will often promise to buy your home, work out a deal with the mortgage company or make your home payments for you. They steal your home, mortgage payments or money. In early 2014 what seems another mortgage fraud was uncovered. Mississippi is one of the lowest educational levels in the United States. People in Mississippi often operate on trust more than by understanding what they are signing. They are very susceptible to frauds and scams, especially in hard times, like when they are facing foreclosure. It is common for a scam to claim they will service the loan and make payments for you to save your home and credit. It is also common to have someone ask to Deed your home to them and they will promise to lease the home back to you often with an option to buy back the home later.
William Dickenson a Jackson Mississippi man was indicted Wednesday on Bankruptcy fraud. The allegations are he serviced mortgage loans through his company and then left the country with the money for the mortgage payments with over $9 million.
- Community Home Financial Services, filed for Chapter 11 bankruptcy protection, and then Dickenson wired about $9 million to Banco Panameno in Panama.
Mortgage checks the company had collected were also sent to Central America.
- Community Home Financial Services in Jackson Mississippi collected mortgage payments from homeowners and properties it purchased from homeowners. It’s revenue was supposed to be about 5 million in 2010 and 2011 for several thousand accounts. If this is true then Dickenson wired almost 2 years of payments to Panama before being expelled and sent back to the United States.
It is alleged that Community Home owed both Edwards Family Partnership of Baltimore and Beher Holdings Trust of Bermuda $30 million, and that they own many or all the mortgages Community Home serviced.
Dickenson tried to move the company to Costa Rica and Panama in December. The U.S. Trustee Kristina Johnson then moved to take over the company and remove Dickson from controlling the company. Dickson failed or refused to hand over the books and the money.
Prosecutors allege Community Home Financial Services then advised homeowners to send payments to a Las Vegas address which was forwarded to Costa Rica and later a Miami address.
The job of reconstructing the companies records, and properly servicing the accounts will be an ongoing struggle for homeowners, creditors of the company and the trustee. This event just seems to underline the lack of regulation of the industry and the problems America is having with rescue and predatory home mortgage fraud.