Mortgage Frauds End Up in Foreclosure Leaving Homeowners Homeless

by Peter Vernon on Mortgage

Foreclosures in Virginia caused housing deflation and yet Delisa Mackey and some of her neighbors in Hampton Roads are losing their homes.

When Mackey had foreclosure problems, she ran to Shanita Lacy – owner of Clean Slate Financial Services. Then after months of waiting, Mackey was taken by surprise when she learned that she may be dispossessed of her home because her straw buyer is now on foreclosure, near to bankruptcy.

Scammers have devised a new way to earn from others properties, while the unsuspecting victim was left in foreclosure, worst to bankruptcy.

The modus operandi goes:

  • The alleged scammers choose their financially problematic victims and assure aid in their loan and foreclosure troubles.
  • Instead, they acquire straw buyers to buy the properties when the truth is larger mortgages are taken out. The scammer freely walks away with the money.
  • This leaves the homeowner and the straw buyers robbed and with bigger financial troubles.

A Pilot investigation said that at least 9 other homes in Hampton Roads are victimized by this scam.

Lacy has allegedly bagged $750,000 from the 9 known cases. The FBI is now on Lacy’s case, but is unsure if the said properties can be regained.

Rodney Ringgold met Lacy in church then she recruited him to be a straw buyer. Money did come until last spring— the money flow halted, Lacy was harder to contact. Then, he discovered that the property that he paid $118,013 for is old and definitely not worth of his money. Ringgold was stunned then declared bankruptcy.

The Virginia foreclosures opened a window for these frauds to self-gratify through robbing.

President of Virginia Mortgage, Neil Phelan was once invited in a seminar where they were taught how to deplete homeowners of their equity. The speaker was proud that he became a millionaire from this safe activity- swindling from naïve homeowners.

Virginia is seventh in the list of most mortgage-fraud-states.

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