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Mortgage Fraud

Source: Flicker

Slowing ratio of home foreclosures seriously does not reflect any decrease in the number of scammers trying to take benefit out of the situation; many vulnerable borrowers are facing. If a company proclaims it can stop foreclosure and they seem fairly professional and honest enough with their information; chances are they might get you out of trouble. But getting familiar with the tactics some of fraudulent artists are using will help you avoid being a victim of foreclosure rescue fraud.

You may have seen a stunning marketing pitch in your inbox, heard an ad frequently on local radio, or some sort of intense gorilla marketing tactics which are used by mortgage companies, such as a brochure sticking with your vehicle’s windshield; stating “yes, now you can get help foreclosure stopped or offering unbelievable loan modifications. A lot more but keep your eyes opened and brain working, many companies are looking for vulnerable borrowers. They create such missives especially to get your attention, and are deceptive enough to make you lose; good amount of money. Moreover they will leave you in a worst scenario than ever before, breaching all their promises. Following are a few phony tactics you may face:

Phony Counseling

The Federal Trade Commission states this one as a pretty common foreclosure fraud. This is also known as “Phantom Help Scam”. It happens when a scammer tries to convince you to pay fee for using their services and in return they will have your lender cutting mortgage payment and stop foreclosure procedure. Most probably they will ask you to avoid contacting your lender, mortgage counselor and attorney. Some insane fraudsters will even ask you to pay them the mortgage payment instead paying the lender. According to FTC (Federal Trade Commission) they will just vanish once you have paid them, whilst you awaiting and hoping for something good to happen. This means you are behind your mortgage payments again; simply in a worst condition.

The Rent 2 Buy

This sort of scam covers a scenario where the scammer makes borrower sign over the title to his home; showing it, part of a deal that enables the borrower rent his home with an option to buy it back once the ghost is clear. FTC says the conditions applied on the deal are tougher and higher enough that it makes the whole process complicated; and the homeowner never gets it back. Further twists occur when fraudster keeps raising the rent amount by the time and takes it up to a level where the homeowner is unable to afford it and then eviction happens. Fraudster then sells the home and takes the profit.

Fraudsters also convince you they will search for buyers for your home “under a term” where borrower signs a deed to leave his home. In such cases scammers also tell you about sharing the proceeds of sale, whilst in reality they rent out and the foreclosure process continue to take place. It allows the scammers to make money from rent until your home is foreclosed.

Switching and Baiting

Often a borrower ends up signing countless forms and documents, when he is engaged in a process to stop a foreclosure. Making you trust these documents is what actually the fraudster wants. As we know a foreclosure process is very painful and tense for a homeowner and a combination of all these factors; makes him sign a document that transfers the ownership to scammer. On the other hand homeowner will think he is saving his home, but in reality he would inadvertently sign his home over to the scammer.

Avoiding Mortgage Fraud

It is all about working with legitimate counselor, who understands the situation and has a vast knowledge of comprehending complex documents. This will definitely increase your chances of keeping and saving your home. The conclusion is to read and understand each and every paper before signing it and ask for foreclosure help from a well-known counselor. Keep in mind you are not supposed to sign any empty forms to enable a company fill out them later on your behalf. Fraudsters are always around and keeping an eye on your situation, they are born to play with your emotions and money; using your desperation and vulnerability is their ultimate weapon. Always think twice before you act.

Comments

  1. Megie

    13, Dec, 2011

    These looters should be hanged. My aunt lost her house because of them.

  2. Marie Imbriano

    01, Jan, 2012

    Obama,your plan is not working! These corporate vultures are criminals and obviously, hold all the power. When the economy turned for the worse my husband lost his business. We had to file bankruptcy, however, we managed to save and give B of A $30,000 trying to modify our loan and save our home. I was even told over the phone that the modification was going through as planned. Then all of a sudden the bank claimed the last payment was late, stole the $30,000 we gave them and stopped the modification process. To this day, the bank themselves do not understand why the loan mod didn’t go through especially given we both have steady income. We have folder full of communication with them, but nobody has had the intelligence to figure it all out. Is it stupidity, laziness or greed? They have since tacked on about $75,000 in fees making it impossible for us to pay back the loan. They are now in the process of foreclosing on our family home. Although my husband and I make decent money, we cannot afford the fees and the current repayment amount they are now demanding. Further, not unlike many other family and friends, we don’t have much of a savings account because we have had to help our adult children, who have also fallen on hard times, with living expenses (rent, food, health insurance, college expenses,etc). Due to the rising cost of living and college expenses, our children have had to stop college and are now seeking full time employment in the hope of saving money and one day returning to college. One of our children has set his sights on a military career, which I support 100%. Despite the hard times, I still love this country. Another hurdle is the loan repayments to the banks that they will face since leaving college. I am sure we are not the only family in this heartbreaking situation, but until somebody stops all the “looters” (corporations, banks, colleges, as well as our own government) from extorting money from the middle class,sadly,the “American Dream” is dead. The sad truth is that what all these crooks have still not come to realize is that in the long run the destruction of the middle class, the backbone of this country, will ultimately be their own demise too.

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