Another mortgage scam

This looks like a big one - 19 people, mainly from Socal, were charged in connection with an alleged swindle in which titles to more than 100 homes all over the country were fraudulently obtained. The ring-leaders allegedly targeted homeowners in financial trouble through the old "foreclosure rescue" pitch, as well as by sending e-mails and faxes of victims struggling to meet mortgage payments. From the LAT:

Charles Head was being held without bond as a flight risk in Santa Ana, where he appeared in federal court on Friday, Asst. U.S. Atty. Ellen Endrizzi said. Head was being represented by Ann Hwong of the federal public defender's office in Orange County, who did not immediately return a call seeking comment.

[CUT]

According to prosecutors, Head and his associates offered financially strapped homeowners two options to avoid foreclosure and to cash out equity to pay bills. If the homeowner did not qualify for the first option -- and few did -- a so-called investor, or "straw buyer," would be added to the title of the property, and homeowners would be required to pay a "rent" that was lower than their original monthly mortgage payment.