Michael K. Lewis, Earnest Lewis, Cheryl Lynn Brooke, Winston Thomas, and two companies, In the House Technologies based in Upper Marlboro and Cornerstone Title & Escrow based in Laurel were sued by Maryland Attorney General Douglas F. Gansler in Baltimore City Circuit Court, Maryland, for alleging violating numerous laws in the course of providing services to homeowners who were facing foreclosure.
The complaint alleges that the defendants market their services to homeowners who are facing foreclosure or are in foreclosure, falsely promising that they can help save the consumers’ homes. Instead of helping homeowners retain title to their homes, the defendants attempt to take title and then strip the equity out of the properties by charging the homeowners numerous undisclosed fees.
After the defendants purportedly take the title to the homes, they charge the homeowners rents that are substantially higher than their previous mortgage payments. As a result, the homeowners find it exceedingly difficult to rebuild their credit and save amounts sufficient to retain their homes. The scheme results in homeowners losing both their homes and the vast majority of equity they had accumulated.
The complaint seeks to stop the defendants' unlawful practices and impose fines for violations of the Protection of Homeowners in Foreclosure Act and the Consumer Protection Act. It also was filed to ensure that the original homeowners retain title to their homes and to provide restitution for homeowners who were harmed by the defendants' actions.
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.