Foreclosure Victims are Being Warned About Scams

February 4th, 2009 | Tags: Foreclosure Scams

Foreclosures are increasing; so are scams. Foreclosure victims are being warned by the administration about multiplying scams.

Jose Hernandez is one of the victims of foreclosures scam. He defaulted on the mortgage of his house in Pacoima. At this time a stranger came forward to talk to him outside his church. He said that for a fee of $300 he could help Jose modify the loan and stop the foreclosure of the house that was his home. Jose paid the man but in return got back nothing! Hernandez after being cheated of the money attended a meeting inside the church called by Neighborhood Legal Services. Hernandez was grateful that he did not lose more than $300 and is now happy to see progress while working with a legal aid lawyer.

Mayor Antonio Villaraigosa and Jeff Davi, the Commissioner of California Real Estate said that more such stories are rolling in. A press conference was called to warn people about these “foreclosure vultures”. The warnings were made in both English and Spanish.

The cheats are largely mortgage brokers who are now out of work. They are targeting those who are defaulting and fearing foreclosures. The scammers usually come with a bag full of promises to help the victims modify their loans in return for a fee. They pocket the money and vanish leaving the victims in a worse situation than before. The scammers are perfect con artists and put on the appearance of representing the banks or the government even.

A spokesperson of IndyMac, Evan Wagner was surprised to see some men dressed to appear like bank executives – blues shirts and look alike official clipboards. They turned up at a foreclosure prevention workshop that the bank had organized in Riverside County in 2008 and approaching with confidence the borrowers who were in the queue. Later the men were arrested.

Other fraudulent companies are advertising themselves in an aggressive manner offering to help foreclosure victims. “Save Your Home” is a catch slogan with them. Those who are defaulting in mortgage loans and facing foreclosure complain that they are flooded with mail material from these types of rescue operators. They are blatant crooks that are making profit from the misery of others.

Davi said that he has been carrying on 292 investigations during the last few months and filing cases at a much quicker pace than before He has had to “shift resources” to keep up with the increasing number of scammers. There are some genuine foreclosure groups but they are not supposed to charge fees until service has been rendered.