Foreclosure Scams

The Daily Real Estate News reports that foreclosure scams are on the rise. It never ceases to amaze me the scum bags that come out of the woodwork to take advatage of people in desperate situations. But unfortunately this is not the first time it has happened and it will not be the last. It seems that every time there is some sort of disaster, the con artists are never far behind.

If you know of anyone who is at risk of loosing their home to foreclosure help them realize that if it sounds too good to be true...it probably is. Help them to find a reputable real estate agent to discuss their options. Many times people who are faced with foreclosure are embarrassed about the situation. This leads them to avoid talking to the people who can really help, instead they look for the solution in all the wrong places. Don't let your friends and neighbors fall victim to devastating scams.


Daily Real Estate News | August 5, 2008
Foreclosure Rescue Scams on the Rise

Foreclosure rescue scams, in which con artists prey on struggling home owners, are becoming more of a problem, according to the Federal Trade Commission.

The FTC has already filed three major foreclosure rescue cases this year, compared with zero a year ago; and one case involves thousands of victims and property worth millions of dollars, according to FTC regional director Brad Elbein, who heads the agency's foreclosure rescue campaign.

Some scammers promise to negotiate with a lender for a fee, then just take the money and run. In other cases, home owners pay rent to live in the house but sign title to a rescue company that is supposed to pay the mortgage. Instead, the company sells the house, taking whatever equity is left.

At least 14 states have passed new laws this year to protect home owners, including a new one in Idaho that requires a written contract with a rescue company and gives homeowners five days to change their minds.

"The scope is probably going to be potentially as large as the mortgage fraud problem itself," says Sharon Ormsby, the FBI's chief of financial crimes.

Source: USA Today, Donna Leinwand (08/04/08)