Growing number of foreclosures creates a new scam
J.D. Smith’s desperate bid to keep his Roxbury condo comes as a cautionary tale for the rapidly growing ranks of Massachusetts residents facing foreclosure.
Last summer, Smith sold his home for $1 in a deal arranged by National Foreclosure Centers, a Florida company that wooed him with unlikely promises: His mortgage would be repaid and he would receive more than $100,000 in cash, reflecting the fair value of his property. He could stay in the condo as a tenant. Best of all, after one year, he could pay a fee and buy it back.
“It seemed reasonable,” said Smith, who was 56 and tired of moving. “It seemed plausible.” It seemed like the only way to keep the home.
But Smith received only a fraction of the promised money. And the new owner quickly defaulted, returning Smith to the brink of eviction. He now believes he was the victim of a scam and is suing those involved in the sale.