Mother-In-Law Was Scammed on Her Mortgage. – Lil Mz.C

“Dear Steve,

My mother in law has no job, no source of income coming in, she recently became a US citizen, out of 3 children only 1 has a stable job which is not a full time job. Her daughter lives with her bf who has a job, and My bf (which is my mother in laws son) has no job but does receive unemployment and I work so there is a way to make the mortgage payment.


My mother in law refinanced her home through a “family” friend, but this guy scammed us by getting $20,000 for himself because he put his wives name on the house because my mother in law nor her kids have good credit. The house recently went on foreclosure and now a City worker told my mother in law to go to court so that they can arrest the guy and she also told her that the house will go back to her name. Could that be possible even if she has no kind of income coming in and she has $20,000 saved up? The one’s paying the mortgage would be her kids.

Lil Mz.C”

Dear Lil Mz.C,


The problem is the house is pledged as collateral for a loan which it appears she agreed to with the “family friend” (scammer) in the name of someone else. That person stripped some equity out and then failed to pay the loan leaving the bank to foreclose on the home. It’s a scam that has been going around.

If you and your mother-in-law feel she was scammed you need to contact the office of the District Attorney and file a criminal complaint against the “family friend”, who really, isn’t a friend.

I really don’t see any simple way out of this mess now that the title to the property is clouded in this scam. The title will need to be cleared, the current lender repaid with a new loan and she clearly doesn’t qualify for a mortgage because she has no income.


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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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