Foreclosure victims are regularly falling for fraudulent rescue plans

With a staggering increase in foreclosures, the victims are regularly falling for fraudulent rescue plans. These companies are slick and smart. They promise to open talks with the lenders but ultimately manage to get over even the title of the property in some cases.

The best thing is to turn away if anyone knocks saying that they can help in modification of mortgages. One should carefully test the credentials of the person offering help and find out if truly he or she is a representative of the mortgage firm. For many years these con artists have been operating with impunity. The state attorneys are busy targeting them together with the Federal Trade Commission. But despite this the practice continues.
One of the reasons for this is the record breaking number of foreclosures. In July there were 360,149 filings in the country according to RealtyTrac. It is 7% more than June and 32% higher than July 2008.

It is best to scamper when faced with private firms making tall promises about saving the borrower from the jaws of foreclosure. They have hypnotic powers of persuasion and so it is best to run and run! Andrew Cuomo, the Attorney General of New York has recently filed a case against a company that has been operating one of the biggest foreclosure rescue operations in USA. The firm has been accused of accepting large amounts as upfront fees without doing anything for the clients. This is the usual pattern.

Another mode of operation is more damaging. Some of these so called rescue firms make the borrowers write over their property and then leases it back to them on rent. The rent is huge and when they fail to keep up, the firm evicts them and takes over the house permanently.

Despite repeated warnings the people fall for it because they are desperate and in their traumatic state of mind it seems like clutching on to something to save themselves from drowning – it is only that they are not aware that it is just a piece of straw. Some schemers play upon the religious sentiments of the borrowers claiming to be to god men and pastors.

Some of the rescue firms tell the borrowers not to make any more payments as soon there will be modifications. Thus they push the borrowers speedily into foreclosure instead of slowing down the process. Like vultures they pick the bones of the dead and dying.

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