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Texas Halts Bogus Foreclosure Rescue Operation

August 31, 2005

Mortgage "Rescuers" • New Washington Law Protects Distressed Home Sellers • Foreclosure 'Rescue' Firm To Pay $1.2 Million To Arizona Victims • Florida Governor Signs Foreclosure Rescue Law • California Busts 'Land Grant' Foreclosure Scam Artists • California Shuts Down Mortgage Scam Artists • FTC Takes On Mortgage 'Rescue' Operations • Illinois Uses New Law to Sue Mortgage Rescue Company • Washington State Settles with Mortgage "Rescuers" • Scams and Foreclosures On the Rise • Illinois Sues Mortgage "Rescue" Companies • Mortgage Crisis? Act Now to Avoid Foreclosure • North Carolina Shuts Down Mortgage "Rescue" Operation • Illinois Shuts Down Mortgage "Rescue" Scam • Indiana Fines Mortgage "Rescue" Firm • Illinois Sues Another Mortgage Foreclosure "Rescuer" • Missouri Sues Foreclosure "Rescue" Business • Illinois Launches Offensive Against Foreclosure "Rescuers" • New York Takes On Predatory Real Estate Scams • Texas Halts Bogus Foreclosure Rescue Operation

Texas Attorney General Greg Abbott has won a temporary restraining order and asset freeze that stops a Houston woman from unlawfully exploiting distressed homeowners, some of them elderly, who face imminent foreclosure and eviction.

The action cites Bobbie Heckard with fraudulently taking possession of the home of an 85-year-old Houston man under the guise of helping the homeowner prevent foreclosure. The man allegedly was led to believe he was only allowing Heckard to consult with his mortgage company, but in fact the transaction allowed her to take ownership of his home.

"This is an alarming trend we are beginning to see in Texas, and I caution every homeowner to be wary of solicitations for foreclosure relief," said Abbott. "I will take every legal means to see that those who unlawfully strip homeowners of their right to own a home are brought to justice and these consumers’ property restored."

The Attorney General acted after learning of this unfolding real estate deception. The order also challenges Heckard’s associate, Christopher Henderson, to whom she quickly transferred ownership of the property after the Attorney General’s office contacted her about its investigation. Henderson promptly established a $67,000 mortgage on the property fraudulently transferred to him from Heckard.

Heckard’s scheme is designed to lure homeowners into transactions they would never consider if they knew the consequences. Heckard obtains a list of homes facing foreclosure, then tries to convince the homeowners that she offers foreclosure rescue services and will correspond with mortgage companies to resolve the problems.

She then persuades homeowners to sign forms allegedly authorizing her to contact the mortgage companies on their behalf. In fact, the forms the homeowners sign are deeds transferring ownership in the homes to Heckard. Once Heckard obtains title to the property, she sells it, pockets the equity and threatens to evict the original homeowner.

Abbott’s lawsuit asks the court to force the defendants to relinquish all monetary gains derived from these transactions, return this money to all victims and restore their property to them. The suit also seeks a civil penalty of $250,000 if the court finds that the practices were calculated to exploit a person over age 65, plus $20,000 per violation of the Texas Deceptive Trade Practices Act.

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