Real Estate Litigation Lawyer
In Syracuse, New York, the State’s Attorney General, Eric Schneiderman has filed a lawsuit against Joseph Funding Company, Inc., a Syracuse-based real estate company and its owners, Rebecca Ausby and Joseph Holman, for preying on “homeowners who were struggling to pay their mortgage, at risk of foreclosure or interested in getting rid of hard-to-sell properties without any profit or loss.”
The real estate company deceptively had their clients turn over ownership of their homes to the company. The clients were told by Joseph Funding Company that by giving ownership of their homes to the company, it would manage the properties prior to a sale by providing services that include finding tenants, collecting rent, as well as paying off the client’s mortgage.
However, as a real estate litigation lawyer from a firm like Eric Siegel Law can explain, an investigation by the State’s Attorney General office uncovered the truth that the company’s services were a cover that left the clients with a false sense of security and inadvertently resulted in the clients transferring their property’s deeds to Holman and Ausby’s company.
As a result of this deceptive strategy, at least 5 homeowners have lost their ownership of their homes while still being legally responsible for the mortgage payments that they assumed would be covered by the Joseph Funding Company. As quoted by Schneiderman,
“Joseph Funding Company and its owners led consumers to believe they were acting in their best interests – but in actuality they stole properties from vulnerable homeowners, destroyed their credit, and then left them holding the bag on their mortgages. My office will not tolerate those who prey and capitalize on homeowners, and I encourage all New Yorkers to consider our tips to avoid scams.”
The Attorney General’s office further elaborates on Ausby and Holman’s strategy
Homeowners reported that the two would present themselves as “real estate professionals who had extensive experience managing properties and buying and selling homes.” The two imposters further emphasized that they had extensive experience dealing and managing properties in economically depressed neighborhoods.
The company allegedly presented paperwork for clients to sign that included a deed transfer to the Company. However, once the contract was signed, Ausby and Holman failed to take any responsibility on making the mortgage payments they had advertised, nor did they attempt to notify the original homeowners that they were not paying off the mortgages.
However, what the company actually did was continue to own and rent the property out for monthly income. Homeowners only realized what was going on until they faced credit issues or were sued in a foreclosure action.