Mortgage

California man sentenced to jail in foreclosure rescue scam

Defendant filed bogus bankruptcies to delay the process

A California man who abused the bankruptcy process to delay a series of foreclosures is now facing 10 months in federal prison.

The Special Inspector General for the Troubled Asset Relief Program (SIGTARP) announced that sentence for 72-year old Walter Bruce Harrell.

A grand jury initially indicted Harrell on eight counts of bankruptcy fraud and two counts of making false statements in a bankruptcy proceeding.  

Harrell, who is from Montara, Calif., used the U.S. bankruptcy code as part of an elaborate foreclosure-rescue scheme.

Authorities say he promised distressed borrowers relief from foreclosure for a fee. Once receiving a payment, Harrell had the homeowners deed fractional interests in their properties to other individuals, who then filed for bankruptcy in the U.S. Bankruptcy Court. Once Harrell notified creditors of the bankruptcy, they were forced to automatically stay any type of foreclosure proceeding.  

SIGTARP got involved with some of the impacted banks receiving TARP money. The creditors filed claims saying Harrell’s actions caused foreclosure delays, resulting in numerous fees and expenses for the banks.

Most Popular Articles

FHA loan limits increasing for almost all of U.S. in 2020

Thanks to increases in home prices in 2019, the Federal Housing Administration loan limit will increase for nearly all of the country in 2020.

Dec 05, 2019 By

Latest Articles

Fannie Mae: Consumers' attitude about the housing market improved in November

Although the nation’s homebuying confidence strengthened in November, Fannie Mae’s Home Purchase Sentiment Index indicates several factors including supply and home price appreciation are weakening growth.

Dec 09, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please