Michigan Duo Pinched With 'False Pretenses' Charge In Alleged Sale Leaseback, Foreclosure Rescue Scam

In Lansing Township, Michigan, the Lansing State Journal reports:

• Two Lansing-area women have been charged in connection with a foreclosure-rescue fraud. Joella Jean Britton, 37, of Eagle, and Nicole Lee Otis, 35, of Lansing were each recently charged with one count of false pretenses for their involvement in a scam that resulted in a Lansing Township couple being evicted from their home, according to a statement from Michigan Attorney General Bill Schuette.
• The homeowners went into default on their mortgage in 2005 and were at risk of going into foreclosure. Later that year, Schuette alleges Britton coordinated a deal in which Otis would purchase the home and later sell it back to the homeowners on a land contract.
• The homeowners gave part of the sale proceeds back to Otis for the $20,000 down payment, according to Schuette. The homeowners made payments under the land contract, but Otis stopped paying the mortgage and the home fell into foreclosure.
• Lansing Township police investigated the case after the homeowners filed a complaint in 2007. Otis was arrested last week, and Britton is expected to turn herself in this week. They're expected to be arraigned later this week. If convicted of the felony, they face up to 10 years in prison.

Source: Two Lansing-area women charged in foreclosure-rescue scam.