Monday, September 17, 2007

Another Maryland Foreclosure Rescue Group Facing Civil Lawsuits

A real estate group is facing charges of equity stripping in connection with the so-called "foreclosure rescue" sale and leaseback of homes of several Maryland homeowners, according to allegations set forth in three civil lawsuits filed by the homeowers in Maryland state courts. The following defendants are named in one or more of the lawsuits which accuse them either of (1) taking unfair and illegal advantage of the financially strapped homeowners involved, or (2) playing some part in assisting the foreclsoure rescue operator to carry out the alleged "rescue" scheme:

  • Harry L. Borden, National Investors Realty Management, LLC, Dale Ross, Pioneer Realty, Inc., Michael Yette, MJ Investors, Realty Executives Main Street USA, John J. Harrison, John J. Harrison Company, Inc., Relocation Management, LLC, Joshua J. Harrison, bankruptcy attorney John D. Burns, Esq., The Burns Law Firm, LLC, real estate agent Jeannette Gray and Title 2000, LLC.

  • Mortgage lenders Resource Mortgage, Lehman Brothers Bank, FSB, and Aurora Loan Services, who provided the mortgage financing as part of two of the foreclosure rescue transactions, were also named as defendants.
In one case, Hurley vs. Borden, et al., the homeowners allegedly had $316,322.89 in equity in their home, yet they only received $37,968.00 for their equity at settlement of the "foreclosure rescue," equity stripping transaction (see First Amended Complaint - page 20, paragraph 29).

In the second case, Tillery vs. Borden, et al., the homeowners allegedly had $185,631.21 in equity in their home, yet they only received $25,143.83 for their equity (see Complaint - page 23, paragraph 28).

In the third case, Mackall v. Yette, et al., the homeowners allegedly had at least $117,000 in equity in their home, yet received absolutely nothing for their equity (see Complaint - page 14 paragraph 24).

Among the state law claims for relief made by the homeowners in the lawsuits are:

Additionally, the lawsuits contained requests for:

  • Declaratory Judgment, Quiet Title, Constructive Trust & Resulting Trust.

The lawsuits also contained allegations of violations of the following Federal laws:

  • Truth In Lending Act ("TILA"), Homeownership & Equity Protection Act ("HOEPA"), Federal Reserve Board Regulation Z ("Reg. Z"), and the Real Estate Settlement Procedures Act ("RESPA").

An additional claim for professional legal malpractice was made in each of the three cases against bankruptcy attorney John D. Burns, Esq. and The Burns Law Firm, LLC., who purportedly was providing legal representation to the homeowners in each of the three cases.

Further, attorney Burns and his firm are alleged to have conducted many transactions over several years with some of the other defendants and he is alleged to have steered his bankruptcy clients to the other defendants to commence the fraudulent “foreclosure rescue scams.”

(see Hurley vs. Borden, page 49, paragraph 134; Tillery vs. Borden, page 55, paragraph 132; Mackall vs. Yette, page 35, paragraph 94).

In addition, the homeowners, who had filed for bankruptcy, were allegedly fraudulently advised by bankruptcy attorney Burns (as well as some of the other defendants) that to save their home from the pending foreclosure, the homeowners must voluntarily dismiss their bankruptcy cases and sell their home to the foreclosure rescue operator.

(see Hurley vs. Borden, page 21, paragraph 34; Tillery vs. Borden, pages 24-25, paragraph 33; Mackall vs. Yette, page 15, paragraph 26).

The homeowners are seeking to void the title transfers and void the mortgages placed on their homes in the equity stripping transaction, as well as seeking actual damages and significant punitive damages.

Representing the homeowners in each of the three cases is attorney Stan Brown, of Largo, Maryland. Go here and go here for more on Stan Brown.

For copies of the lawsuits, see:


October 30 2010

This blog has been notified by John J. Harrison, one of the defendants in the foregoing lawsuits, who has advised that, in the matter of Tillery v. Borden, the judge has, as of September 2010, ruled in favor of him, his son Joshua J. Harrison, and his associates and the case has been dismissed.