A Gwinnett County widow who sought help to avoid foreclosure is now facing eviction from her home. Kimberly Gravitt contacted a company named Homesaver 911, which led to a series of events that resulted in her losing ownership of her property, allegedly without receiving any payment.
The situation has caused significant distress, leading to a recent hospitalization for mental health care, according to a report from WSB-TV. Her family states that the company she turned to for a lifeline ultimately took everything she had.
Key Takeaways
- A Georgia widow, Kimberly Gravitt, lost her home after engaging with a "foreclosure rescue" company.
- She signed over her property's warranty deed, believing it was a temporary measure to save her home.
- The deed was subsequently transferred to another company that sued her to force a sale, which a judge approved.
- The family maintains that no money was ever paid for the property, despite the company's claims.
- Federal agencies warn that such foreclosure rescue scams are a growing threat, with victims losing over $82 million in 2024.
A Deal That Led to Eviction
In 2024, Kimberly Gravitt was struggling with her mortgage payments and feared losing her home. Seeking assistance, she contacted Homesaver 911, a company that presented itself as a solution for homeowners in distress.
As part of their arrangement, Gravitt signed a warranty deed. This legal document transferred the ownership of her property to Homesaver 911. The company reportedly told WSB-TV that such transfers are standard practice and are meant to be temporary, with ownership returned to the client once the underlying loan issues are resolved.
However, events took a different turn. The deed to Gravitt's home was not held temporarily but was instead transferred to a different entity, Georgia Venture Investment Company.
The Legal Battle Begins
Following the transfer, Georgia Venture Investment Company initiated legal action against Gravitt in 2024. The company claimed in court that Gravitt had agreed to sell her property to them for $150,000 in 2023 but had not completed the transaction.
A Fulton County judge ruled in favor of Georgia Venture Investment Company through a default judgment. The ruling mandated that Gravitt must sell the home to the company upon their payment of the agreed-upon purchase price.
“She was balled up in a ball on my couch going, ‘They just got all of my equity,’” Destiny Gravitt-Waters, Gravitt’s daughter-in-law, told reporter Justin Gray. When asked what her mother-in-law received for the house, she replied, “Nothing. No money. Nothing.”
An attorney for Georgia Venture Investment Company stated via email that they have attempted to pay Gravitt multiple times, but she has refused to accept the money. The family strongly denies this claim, stating no payment has ever been offered or received. According to the WSB-TV report, there is no documentation showing a sale or a transfer of funds.
A Widespread and Costly Problem
Kimberly Gravitt's experience is not an isolated incident. Federal authorities have noted a significant increase in scams targeting homeowners who are financially vulnerable. These schemes are often operated by individuals or companies calling themselves “foreclosure rescue agencies” or “mortgage consultants.”
How the Scam Works
According to the Federal Deposit Insurance Corporation (FDIC), these scams typically prey on homeowners who have fallen behind on mortgage payments. The company offers to help, but their solution involves the homeowner signing over the deed to their property. They often promise this is a temporary arrangement, but it frequently results in the homeowner losing all control and equity in their property.
These operations exploit the fear and stress associated with the threat of foreclosure, convincing homeowners to sign complex legal documents they may not fully understand. Once the deed is transferred, the scammer effectively owns the house, leaving the original homeowner with nothing and facing eviction.
The Financial Toll of Mortgage Fraud
In 2024, the Federal Trade Commission (FTC) recorded 34,304 cases of mortgage or debt relief fraud. This category of fraud ranked as the 10th most common type of financial fraud reported in the United States. Collectively, victims lost an aggregate of $82.9 million to these schemes last year alone.
The prevalence of these scams highlights the risks faced by homeowners in financial difficulty. The promise of a quick and easy solution can be tempting, but it often masks a predatory scheme designed to strip them of their most valuable asset.
Protecting Yourself from Foreclosure Scams
Homeowners facing financial hardship are the primary targets for these fraudulent operations. Recognizing the warning signs and knowing where to turn for legitimate help is crucial for protection. The State of California Department of Justice and other consumer protection agencies offer clear guidance.
Key Red Flags to Watch For
Experts advise homeowners to be extremely cautious of any company or individual that exhibits the following behaviors:
- Demands for Upfront Fees: Legitimate housing counselors do not charge large fees in advance for foreclosure prevention services.
- Pressure to Transfer Your Deed: Be wary of any proposal that requires you to sign over the title or deed to your home, even if it's described as "temporary."
- Guarantees of Success: No one can guarantee they can stop a foreclosure. Promises that sound too good to be true usually are.
- Instructions to Stop Paying Your Lender: Avoid anyone who tells you to stop communicating with your mortgage lender or to make payments directly to them instead of your lender.
Steps to Take if You Need Help
If you are struggling with your mortgage, there are safer and more effective options available:
- Contact Your Lender Immediately: The first and most important step is to communicate directly with your bank or mortgage servicer. They can discuss potential solutions such as loan modification, forbearance, or a repayment plan. Ignoring their communications will only worsen the situation.
- Seek a HUD-Approved Housing Counselor: The U.S. Department of Housing and Urban Development (HUD) sponsors housing counseling agencies throughout the country. These counselors provide free or low-cost advice on avoiding foreclosure and can help you understand your options and negotiate with your lender.
- Report Suspicious Activity: If you believe you have been targeted by a foreclosure rescue scam, report it to the FTC, your state's Attorney General, and the Consumer Financial Protection Bureau (CFPB).
By staying informed and seeking help from reputable sources, homeowners can better protect themselves from predatory schemes that exploit financial distress.
