Foreclosure Scammers Prey On The Vulnerable Victims

January 22nd, 2008 | Tags: Foreclosure

It is a three pronged attack – falling real estate, rising mortgage interests and sinking economy that are pinning down thousands of foreclosure victims. Scammers are taking advantage of the situation and exploiting the desperate by false hopes. Unknowingly the people are signing away their title deeds to these con artists. When strangers come knocking looking solicitous and helpful the traumatized bank foreclosure victims turns to their shoulders for support without a second thought. It is human nature.

If the house owners are made aware of the potential danger then there are several ways these nuisances can be identified. The first indication is that the scammer will ask you to stop your links with the lender and or do not talk with counselors. It is a grave mistake not to talk with lenders but this is what half the house owners do. The lender is the only person who can help – who is interested in helping.

Another danger signal is when anybody asks the borrower to sign over the deed of the house giving an assurance that this will ease the problem. Jeff Underwood a loan officer warns that the signing of the deed does not absolve the borrower of the commitments towards the loan. The mortgage continues in the name of the borrower. Other scammers slip in a quit claim paper in the middle of stacks of papers being signed.

The contradiction is that many pay the scammers as much as a month’s mortgage payment – such is the influence of these felons. The borrower pays on the good faith that the money is going towards the clearing of the dues but in reality the scammer is pocketing the amount. The borrower should understand that unless a consent form has been signed nobody else can negotiate with the bank. This is something the borrower can do personally and so why pay another for the services?

If counseling is sought there are many non-profit agencies officially there to help. HUD has a list of approved such agencies and can be located on the web. The National Foundation for Credit Counseling also has a web site to guide foreclosed victims.

The bottom line is that the borrower should immediately call the lender as soon as the warning red lights begin to blink. Time is of great importance. Delay can be disastrous. The first thing is to be calm in the face of the foreclosure crisis.

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