Amidst Foreclosures, Raudster Strips Senior Citizens off their Homes

The US is perhaps going through one of the challenging phases. Unemployment has reached its zenith. As people lose jobs they are faltering on mortgage payments. Hence, banks are taking over the properties – a phenomenon that has made foreclosures very common. Home values have plunged across the nation which has compelled the government to come up with certain programs. One such program is Making Homes Affordable Program under which people are entitled to receive down payments and their mortgage amounts are being revised too. The downturn, it may be pointed out, has spawned many unscrupulous agencies who are robbing people in the guise of providing assistance.

Recently, Mark Diamond has been accused of defraud. He has come up with schemes that are aimed at senior Afro-American citizens. A case has been filed in the Illinois Attorney General’s office. Five mortgage agencies and house repair companies are allegedly involved in this. They have duped 36 house owners of Chicago. Two of these home owners have even lost their properties to foreclosure because of this.

Diamond had come up with a scheme along with the mortgage companies to strip $1.3 million equity from the homes of the senior citizens who live on the western and southern fringes of the city. The state’s consumer fraud act has been allegedly violated. Earlier, too, the state had tried to rein in Diamond but it seems the man was able to escape the government.

United Construction of America, Skyway Builders and United Residential Services and Real Estate are the three companies that have been named in the suit. According to the state, Diamond is the president of United Residential Services and OSI Financial Services and Harbor Financial Group.

Diamond’s illegal activities have come under scrutiny. These are being investigated upon for the last two years. According to the lawsuit, Diamond sought to provide refinance of mortgage at lower interest rates. This encouraged owners to spend money from the mortgage amount, thereby flushing out mortgage, in order to repair properties. The work was done by the repair companies. It was Diamond who had duped the homeowners into paying the amount and did not complete the repair with the money.

What is even worse, the homeowners who could not afford to pay the mortgage were duped by Diamond. The fraudster forged their signatures on the loan documents. Subsequently 12 have defaulted on the mortgage. Two have lost their houses to foreclosure.