DENVER—Colorado and federal prosecutors have filed a joint lawsuit alleging a Georgia-based company and its principals ran a foreclosure-rescue scam, dating back to March 2010.
Bella Homes is accused of asking struggling homeowners to hand over titles to their homes and then enter agreements to lease back their homes from Bella while the company worked to halt foreclosures and purchase their mortgages.
Prosecutors allege Bella Homes accepted more than $3 million in “rent” fees from more than 450 consumers, affecting people in two dozen states, but didn’t provide any meaningful assistance to homeowners to avoid foreclosure.
An attorney for Bella Homes declined to comment Thursday.
A federal judge ordered defendants Wednesday to cease operations and transfer $500,000 to the government for potential restitution, pending resolution of the case.
