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Maryland Women Get Restitution in Foreclosure Rescue Scheme

As part of a settlement, two mortgage firms based out of Owings Mills, Maryland accused of running a “foreclosure rescue scheme” have agreed to pay $110,000 in cash restitution as part of a settlement that saved the homes of two elderly women in Ellicott City, Maryland, one of whom has died since becoming a victim.

In 2006, the two women fell behind on their mortgage payments due to poor health and related bills. They responded to a refinancing offer contained in packets labeled “Your Best Hope has just arrived.” However, instead of the rescue from the brink of foreclosure they were promised, the women learned that they had unwittingly signed away the titles to their homes and were facing eviction.

At that point, Howard County, Maryland consumer protection officials stepped in by filing a lawsuit against Stewart D. Sachs, president of Bay Capital Corp., which sent the letters, and Heavyweight Title Co. They also obtained a temporary restraining order preventing the eviction of 63-year-old Betty J. Bullock, who was legally blind at the time she signed the mortgage papers, and 68-year-old Griselda Mason. In October 2008, Bullock died due to a stroke.
Both women had been told they could get out of debt in two years, but were then charged rents so high they were unable to afford staying in their homes.

On December 15, county officials announced that a final settlement had been reached. The agreement restored ownership of the homes to Mason and Bullock’s granddaughter, who was living with Bullock. Sachs and Heavyweight agreed to no longer conduct any commercial lending in Howard County for a three year period and never use “unfair deceptive trade practices” again, according to officials.

Additionally, Sachs must pay $10,000 in investigation costs and restitutions and Heavyweight must pay $100,000 to the victims.

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