AG names 37 in 'egregious' foreclosure scam

New Jersey Attorney General Anne Milgram has filed suit against 37 defendants for alleged foreclosure fraud and racketeering.

The defendants are accused of duping desperate homeowners to the tune of more than $3 million. According to the lawsuit, the scam involved convincing homeowners to sign over their home in order to prevent foreclosure.

The suspects would allegedly con those homeowners into renting their homes temporarily, with a plan to buy them back in a year or two. When the deals were over, however, the homeowners would be broke and unable to get their homes back.

The homeowners claim to have been evicted or left to pay as much as $3,000 a month to rent homes they had previously owned.

The 37 defendants include two companies, Paramus' Vest Financial and Bloomfield's JP Global Management.

"What is particularly egregious about these cases is that the defendants preyed on struggling homeowners who turned to them in hope in their darkest financial hour," says Milgram.

For Anne Milgram's presser, go to channel 612 on your iO digital cable box and select iO Extra.

Avoiding Foreclosure Scams

New Jersey Division of Consumer Affairs - 800-242-5846 or 973-504-6200New Jersey Division of Consumer Affairs

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