State Representative Brad Paquette is calling attention to a foreclosure scam that’s been targeting vulnerable homeowners in Berrien County.
In a video posted to social media, Paquette chats with county resident Jordan Clint, who explained to him what predatory mortgage companies have been doing to people who fall behind on their home payments. He said as soon as foreclosure notices are published, scammers go door-to-door — sometimes within hours — pressuring people to sign documents that actually transfer ownership of their homes.
“They only target houses with some pretty good chunk of equity in them, and they show up, they’re a little intimidating, and they try to scare these people into signing, and they try to scare them quick, like any high-pressure sales,” Clint said.
Clint says the scammer then makes an offer with threatening tones.
“‘You don’t have a chance to pay back 100 grand like you can’t even make the $400 a month payment. How are you going to come up with 100 grand? You’re going to get kicked out. I know the sheriff, I can have him evict you, on this day you’re gonna be out, you’re gonna be in a bad way but thankfully I‘m here because if you sign this paper, I‘ll let you stay here for six months rent free.'”
They’ll also offer $500.
Clint said in reality, Michigan homeowners have a legal redemption period and are entitled to any equity, or “overage,” if their home sells for more than what they owe. The scammers exploit the fact that most people don’t understand the process.
Representative Paquette said he and state Representative Joey Andrews are now working on legislation to protect people from these scams through education and enforcement. He’s expecting a hearing on the bill to update state foreclosure laws soon.
