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Associated PressSACRAMENTO -- 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.
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