I’d love to tell you this is a new foreclosure scam, but it certainly is not. In troubled times people have often been persuaded to sign away the title to their property in hopes they can avoid foreclosure by renting their property back from an investor or company that promises to bring their mortgage current.
In this case, JP Global Property Management, Inc. persuaded the homeowners to sign over the title to their property, pay rent to the new owner, rebuild their credit and then buy their house back at some point in the future. Instead, it is said JP Global Property Management took out a second mortgage on the property, collected rent from the homeowners, did not turn over equity at closing as promised, and then failed to make the new mortgage payments.
In October of 2010 the State of New Jersey sued JP Global Property Management.
Milgram v. JP Global Property Management, Inc.: The four-count JP Global Property Management lawsuit, while encompassing more property transactions than the Vest complaint, charges essentially the same fraudulent and collusive conduct in duping distressed homeowners with “foreclosure rescue” schemes. Again, homeowners facing foreclosure were presented with a way to continue living in their homes by signing over their titles to a third-party buyer. Ostensibly, homeowners would pay “rent” to the new owner while repairing their credit, then would be in a position to buy back their home in the future.
The schemes were typically facilitated, the lawsuit charges, through loan applications and other documents containing false information.
Homeowners often never met the purchaser of their homes and, once having committed to the sale/leaseback transaction, were presented with monthly “rent” terms more costly than their original mortgages. Also, victims typically received no money at closing despite prior assurances the equity in their homes would be theirs to keep.
The defendants are charged with civil racketeering including predicate offenses such as theft by deception, forgery, issuing false financial statements, deceptive business practices and money laundering. The suit also charges violations of the Consumer Fraud Act , including failing to properly conduct settlement proceedings, forging consumer’s names on documents, refusing to provide consumers with copies of sales contracts and other loan papers, making false promises misrepresentations and , knowing omissions of fact, and violation of state advertising regulations. The alleged conduct took place between 2004 and early 2008.
Defendants other than JP Global Property Management named in the lawsuit, all but one of them from New Jersey, include:
Jeremy P. Sorvino of Waldwick; Jeffrey M. Malen of Ringwood; Peter H. Eckhardt, Jr. of Livingston; Christopher William Eckhardt of Washington Township, (Bergen County); Anthony Scordo III of West Orange; Felix Nihamin, an attorney who resides in Franklin Lakes and practices in New York City; Michael J. Andalaft, an attorney with law offices in Cedar Grove; Capital Hill Mortgage, Inc.; Stanley Capital Mortgage Company, Inc. of Englewood Cliffs; Rhys A. Herrmann of Belleville; Brendan Joseph Flynn of Fort Lee; Maryann E. Sorvino of Ridgewood; Frances B. Benna of Elmwood Park; Vincent F. Latorre of Kenilworth; Jennifer R. Kortman of Livingston; Rebecca A. Kortman of Chatham; William McVeigh of Wharton; Mauricio V. Almeida of Colonia and Glenn B. Thompson of New York City. – SourceAvoid Foreclosure Scheme Feeds on Desperate People by Steve Rhode