Proposed legislation could help victims of notorious reverse mortgage scam artist Mark Diamond
CHICAGO (CBS) -- Imagine needing urgent repairs for a home that's been in your family for generations after being duped by a man now serving time in federal prison. That's the reality for one North Lawndale man who is now hoping that proposed legislation can help him renovate his beloved home.
David Herron's home in North Lawndale has been in his family for more than six decades. Among other repairs, it needs a new roof and a new heating system.
"The heating unit was never, never, put in," he said as he stood inside dressed in a winter coat.
His late mother, Effie Herron, had dementia when she signed what she thought was paperwork for home improvements by a man named Mark Diamond. What Effie signed was actually a reverse mortgage.
On Thursday, Diamond was sentenced to more than 17 years in federal prison for defrauding seniors like Effie in a reverse mortgage and home repair scheme.
In 2017, David's late sister, Barbara Herron, was facing eviction and foreclosure from their family home, but the eviction and foreclosure were stopped when CBS News Chicago helped tell their story.
David said the reverse mortgage his mother signed has since been sold, but he's still getting letters in his mother's name, saying nearly $300,000 is owed.
Effie never saw a dime of the money from the reverse mortgage she signed.
"Never. Not one penny," David said.
And no repairs were ever done.
"That was her wish, as she was getting older up in age, that she wanted this place to be repaired so her family would always have somewhere to live and to be for her kids and for her grandkids," David said.
Stories like David's are the reason why Rev. Robin Hood is pushing for the passage of House Bill 5506 in the Illinois General Assembly.
Hood is one of the founding members of Fix Our Homes Illinois Coalition, which crafted the legislation and recently held a town hall meeting. The bill would provide grants to agencies to help low-income seniors preserve their homes.
"You've got plenty of supporters. It's time now to move it to the Senate," he said. "Sen. Lakesia Collins, which we're in her district right now, the 5th District, agreed to carry the bill in the Senate, which is huge."
David, who is 72 years old, hopes the proposed legislation becomes state law.
"This is something that's needed. You know, just older people in general, they're not able to do as much as younger people as far as maintaining and finances for property," he said.
He wants the family home to be enjoyed for generations to come.
