Insurance And Arson – Avoiding Foreclosure Without Damaging Your Credit

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Why risk losing your home to foreclosure if you can’t make the payments?  Why should you ruin your credit because you can no longer afford the house you live in?  An Arkansas attorney and real estate developer, Aaron Jones may have come up with a unique approach to get out of debt while keeping his FICO score intact.  Burn the heavily insured house down and collect the insurance money.  Somehow, he thought that would be a good idea.  The State of Arkansas and the insurance company disagree.  Aaron Jones has been charged with arson and fraud.  According to the prosecuting attorney, on May 30, 2008, Aaron Jones, set fire to his home in order to collect insurance money.  He filed a $2.8 million claim after the fire.   It’s odd that his home spontaneously caught fire not too long after Jones was not able to make his $331,000 balloon payment on the home.  Strange coincidence???

Jones faces three counts of mail fraud and one count of knowingly using fire to commit mail fraud. Jones has pleaded not guilty and told authorities that he was bound by an intruder, who then set the home on fire.

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