Foreclosure Rescue Operator Gets 30 Months In Equity Stripping Mortgage Scam; Bogus Sale Leasebacks Left Investors Holding The Bag, Homeowners Booted

In Edmond, Oklahoma, The Edmond Sun reports:

• An Edmond man was sentenced Wednesday to serve 30 months in prison for money laundering, stemming from a mortgage fraud scheme. Phillip Neill Seibel, 39, of Edmond, was sentenced by U.S. District Judge David Russell, who ordered Seibel to pay $770,037.31 in restitution and serve three years of supervised release after completing his sentence.

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• A licensed mortgage broker, Seibel formed Homesavers in April 2007. The company had an Oklahoma City address. Homesavers contacted homeowners facing foreclosure and told them they could remain in their homes while they worked to improve their credit, according to court records and court proceedings.(1)

For the story, see Edmond man sentenced in fraud.

(1) According to the story, the company also promised to find investors to buy homes and to let people remain in their homes and begin paying “rent.” Seibel’s company reportedly promised to use those payments to pay mortgages, and said sellers could rebuy the homes for a fixed price once their credit improved. The company promised the potential investors their only role would be to buy the homes. It would coordinate all rent payments with the sellers and ensure mortgages were paid on time, the story states. Homesavers then assisted the investors in obtaining financing to buy the homes, and regularly submitted false documents on the investors’ behalf to mortgage companies and assisted investors in submitting false documents to the mortgage companies. At closing, Seibel’s company would arrange to receive the equity checks directly and, without permission, endorse the sellers’ names and deposit the checks into a company bank account. The story states that Homesavers did not make the mortgage payments on the homes as promised, but repeatedly assured sellers falsely that mortgage payments were being made. Most of the homes were reportedly foreclosed upon, and the sellers lost all equity in their homes, according to the court document.