Years after the official end of the recession, many New Jersey residents are still facing the threat of losing their homes. Some homeowners became desperate enough between 2006 and 2009 to believe a company's promises to stop foreclosure. Recently, the architects of what federal officials believe was a lease buyback scam were arrested, which may leave many homeowners wondering what happens next.
The alleged scam involved homeowners signing over the equity in their homes to the company, which was supposed to be kept in an escrow account used to make payments on a new mortgage. The home would remain in the owner's name but would essentially be leased from the "investors" who supposedly provided the funds to refinance the home. The owner would then be eligible to "repurchase" the home the following year.