Kansas officials have sued five companies for allegedly fraudulent mortgage-rescue schemes that included "redemption rights" scams in which homes were leased back to troubled borrowers.
State Attorney General Steve Six said Apple Asset LLC of Overland Park and Rush Properties LLC of Olathe would buy a homeowner’s redemption rights, lease their house back to them, and then sell the house for a profit when the homeowner couldn’t afford to buy the house back.
Three other companies — Kirkland Young in Florida; ABS Saveco in Georgia; and Helping Hands Support Services in California — are accused of operating loan-modification scams. The companies offered to negotiate loan modifications for an up-front fee, but did nothing beyond mailing in documents on behalf of the consumer, Six said.
In several cases, consumers lost their homes and ended up much worse financially than they were before, Six said.
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