Consent Order Obtained in Foreclosure Scheme

Allison Tussey —  May 9, 2011 — Leave a comment

Brian Thompson, Greene County, Missouri, in 2009, was sued for allegedly engaging in a “foreclosure rescue” scheme to gain the equity in homes that were subject to foreclosure.  A consent order has been obtained against Thompson for his role in the foreclosure scam which tricked vulnerable homeowners into transferring ownership of their homes to him and his associates.

Under the consent judgment, Thompson is required to pay $51,000 restitution and is prohibited from violating Missouri’s Merchandising Practices Law in the future.

According to the amended petition, Thompson would search foreclosure listings in a periodical called “The Daily Events.” He would then contact homeowners promising to stop their foreclosures by purchasing the home or finding a buyer for the home who would pay off their mortgage. Thompson and his associates kept the equity in the homes as profit. Thompson then told homeowners he would lease the home back to them and would resell them the home if they could obtain a new mortgage. There was no written contract between Thompson and the homeowners setting out the terms of his services or the amount of his fees. Some homeowners ended up losing title to their homes or the equity in their homes; others were evicted from their homes when they were unable to make their lease payments.

Attorney General Chris Koster, who filed the amended petition, announced the consent order. 

“Mr. Thompson took advantage of consumers at a time when they were especially susceptible to any scheme that promised to keep them in their home,” Koster said. “The Attorney General’s Office will continue to aggressively seek justice against those who prey on our citizens when they are at their most vulnerable.”

 

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Allison Tussey

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