Foreclosure Predatory Rescue Operations

August 27th, 2007 | Tags: Foreclosure

The house is falling. The vultures are moving in. In the melee of foreclosure crisis drowning borrowers are reaching out for any support – even if it turns out to be a wisp of straw that will further expedite collapse.

These predators are the rescue-scammers. Their brood is multiplying with the same speed as foreclosures are increasing. Already legal action has been initiated against many. It is the same picture across the country. In North Carolina the number has risen from 2 last year to 15, with half a dozen being currently charged for fraud. 21 new companies have started laying their nets in Cleveland. The number of above board companies is very few. The scammers have become so bold that they even have website replete with faces of smiling satisfied clients!

First these predators find out the details of delinquent mortgages from foreclosure listings. Then they harangue their victims with repeated phone calls, mails and posters. The approach is a combination of pestering mixed with a good dose of sympathy.

The heinous vultures carefully choose their victims giving priority to the old, infirm and low income minorities in shabby neighbourhoods. In the long run anyone can be targeted because when the roof above your head is about to blow away any and everybody will be vulnerable to attack.

Scammers are very assuring. They promise a neat solution with the added whisper of caution to the gullible ears of the victim that in no way should they contact the original lenders; nor should they seek legal advice.

Having made the groundwork, gained trust and confidence they resort to outright fraud and push through piles of paper. It is so voluminous and complicated that borrowers easily tire out – especially in their present state of mind. They sign – they literally sign off their property on vague assurances that they will continue to stay on as tenants.

Another line of approach of these scammers is the community angle. They pose as representatives of some ethnic groups or evangelical church organizations and get their work done smoothly and slickly.

The small time scammers push off and disappear after taking fees with empty promises of help. The sufferer not only loses this amount but the time lag wasted causes further damage as regards the loan and interest. The big timers manage to get the property itself written off in their favor.

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