Mehri & Skalet provided pro bono representation to numerous home owners who claimed they had been taken advantage of by a predatory mortgage rescue scam. Homeowners facing foreclosure alleged they were lured into agreements to “temporarily” sign away the deeds to their homes with the promise that ownership would be returned to them after they improved their credit by participating in counseling. The complaint claimed that once they had gained legal control over the property the scam artists would deplete all the home equity, stealing hundreds of thousands of dollars from the original home owner.
This case was brought to the attention of M&S by the Washington Lawyers’ Committee on Civil Rights and Urban Affairs. The case was successfully resolved in 2009 in a manner that protects the rights of homeowners; the exact terms of the settlement are confidential.