A reverse mortgage can prove to be an economic lifeline to those in troubled financial waters. When someone promises to throw out that lifeline, but instead reels it in and walks away, homeowners are left floundering. That’s exactly what happened when a Chicago, Illinois mortgage originator allegedly made off with about $7 million in loans from six different lenders. This situation, according to bankruptcy attorney Rashad Blossom, is a tragedy for the victims – many of whom were left facing foreclosure.
According to an April 2019 article from HousingWire.com, “elderly homeowners” from “125 African American families” were victimized in the scam that allegedly saw Mark Steven Diamond take out “reverse mortgages without their knowledge” or misrepresent “the terms of the loan in order to convince them to get one.” Previous reports indicate that the individuals allegedly targeted by Diamond were anywhere from 62 to 97 years old and they were singled out “based on how much equity they had in their homes and whether they were financially sophisticated or not.”
Further complicating this situation is that the homeowners who’ve sought legal protection in the wake of the scam had to file suit against Reverse Mortgage Solutions, which, along with its parent company, Ditech Holding Corporation, are currently in bankruptcy. Ditech/Reverse Mortgage Solutions, according to another HousingWire.com article, has encountered many problems servicing its reverse mortgage loans, and it is mulling selling off some or all assets.
One legal office working to represent these 125 families is working to argue in court that the victims of fraud need to have their concerns addressed in the companies’ bankruptcy case and that “consumers may be without recourse to appropriately address these errors” should this fail to happen. A committee of creditors has thus been established to help the reverse mortgage borrowers as they battle default and other economic woes of their own. This could be a lose-lose situation for those who initially trusted the Chicago-based mortgage originator, and is worrisome to Rashad Blossom.
As an attorney who assists consumers in fighting off foreclosure and with more than a decade of experience in this sector, Rashad Blossom often helps his clients to avoid losing their homes. He’s closely following this case for these reasons and hopes for a positive outcome for the affected consumers despite the bankruptcy cases of Ditech and Reverse Mortgage Solutions. “We just want to make sure that the bankruptcy does not do anything that negatively impacts consumer rights,” J. Samuel Tenenbaum, Northwestern’s Complex Civil Litigation and Investor Protection Center director, told HousingWire.com.
An experienced and respected bankruptcy lawyer, Rashad Blossom has helped many people to file for bankruptcy as well as offering valuable advice to many others. Many people who are in dire straits in terms of their finances are nervous about the thought of bankruptcy. This is because there used to be such a stigma attached to it.
Over recent years, however, many people have found themselves in a position where they are struggling with debt. This can have a serious impact on their health, work, finances, and quality of life. Rashad Blossom has helped many people who are in this situation, making the process of dealing with bankruptcy far less stressful and far more manageable.
Rashad Blossom: How Bankruptcy Can Actually Help You
For those who are nervous about bankruptcy, it is important not to focus on the stigma attached to this process. The aim should be to look at the long-term picture and for those who have experienced serious financial losses bankruptcy could be the most effective solution. With all cases, Rashad Blossom assesses the circumstances of the person to determine whether bankruptcy is, in fact, the most appropriate solution or whether there are other options available.
If you are an ideal candidate for bankruptcy, you can enlist the help of Mr. Blossom, and once the process has been started, you can benefit in several ways. Some of the key benefits that bankruptcy can offer include:
According to Rashad Blossom these are just some of the key benefits that come from filing for bankruptcy if you have serious debt problems. Of course, there are other options that may be suited to different needs and circumstances, which is something that you can discuss when you consult a legal expert.
Whatever You Do, Consult an Experienced Expert First
Your friends and family mean well, but when past-due notices a piling up and creditors are threatening to sue, you need professional assistance. For those who feel that bankruptcy may be a viable solution for them, it is important to seek legal advice from a real expert. This will enable you to explain your financial situation and circumstances so that a specialist bankruptcy lawyer like Rashad Blossom can determine whether bankruptcy is the best solution for you.
If it is the right move, you will benefit from comprehensive legal support, advice, and assistance every step of the way. This can help to make the whole situation far less of a strain and it means you can be sure everything is done by the book. If you find yourself unable to get out from under mounting financial obligations no matter how hard you work at it, it may be time to call in some help.