Lease-Buyback Schemes
A Classic and Widespread Scheme
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A lease-buyback scheme starts with an offer where the owner can turn the lease over to another, with an option to buy it back later. The owner is promised to be able to rent the property back, which will be counted toward an eventual buyback. These will almost certainly end in the loss of the property, or considerable additional cost - The rental prices maybe made so high that the original owner cannot afford to continue paying and/or the buyback price maybe set far above the fair market value of the property.
TOM’S COMMENTARY:
We have seen many examples of this scheme around Florida. Thanks to the tough Florida law, the perteptrators (at least so far) have always agreed to sign a deed immediately returning title to the homeowner, in order to avoid being reported to the States Attorney. That does not mean that the simple act of signing the deed to the scammer in the first place doesn't complicate the task of helping the homeower.
Please, PLEASE, contact a licensed real estate attorney before deeding your home to anyone (including the BANK)! You have rights, and your chances of retaining your home (if you simply defend) are much better than you may imagine.
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As if the misbehavior of Wall Street and the Too-Big-To-Fail Bankers hasn't hurt the American middle class badly enough, we also have lots of "little guy" crooks running around trying to capitalize on people's fear, in order to get them to throw their hard-earned money at whacky ideas which will NOT really keep them in their homes.
This is a place to list such schemes as they rear their ugly heads, to help warn the public away from these fraudsters.
Generally speakiing, Mortgage Rescue Schemes are scams that target those whose home is facing potential foreclosure. The scheme prays on desperate homeowners who are struggling with, or behind in their mortgage payments. These schemes cause difference kinds of harm to the homeowners, but it usually involves the owner ultimately being forced out of their homes, and losing even more money.
The irony is, most of the people who are tempted by these scams could likely have held on to their homes if they had just consulted an attorney experienced in the defense of mortgage foreclosures.
Florida has enacted a Foreclosure Rescue Scheme statute, with tough penalties for those who prey on the fear of homeowners, and fines up to $15,000 per violation.
