Scammers Fishing In Troubled Waters of Foreclosures

January 23rd, 2008 | Tags: Foreclosure

States are standing beside the borrowers who are being duped by scammers – wolves in grandmother’s clothes. It is the law of Nature – predators are followed by scavengers. When the predatory lenders have had their say the field is left open for scammers to pick the bones clean. They come with the message of hope and lure in the hapless foreclosure victims into their trap.

Some attorney generals are clubbing together to tackle this secondary infection. Iowa Attorney General Tom Miller is getting ready a legislative package to provide safeguards to the people against these scammers. One bill addresses directly the rescue scam matter. The culprits come sneaking in taking advantage of the traumatized atmosphere and promises help in exchange for fees. Once it is pocketed they vanish. They do nothing to stop foreclosures. Money taken from people who are already cash strapped is like scattering salt on an open wound.

Miller was joined at a news conference by Dan and Patricia Potter who were once victims of this so-called rescuers. Facing foreclosure they paid a dubious company $795 on the assurance that they would escape the net. But the company took no steps to mitigate their problems – rather they demanded another payment of $500. All that the Potters could do was to retrieve about $400.

Miller warned that foreclosure scams had just begun to surface in Iowa. It is just a symptom of the main disease – foreclosures. The entire country is in its clutches. A legislation alone can put a check to the engulfing evils.

Attorney General Steve Carter of Indiana took firm legal steps against Capital Foreclosure Inc., demanding $20,000 restitution charges for customers who had been duped with false promises and hopes. Many lost their houses after trusting this company that preyed upon the vulnerability of foreclosure victims. As many as 20 persons had sought the help of Capital Foreclosure. Some had paid $40 while others as much as $4,100 to these pseudo counselors. The office of the general is seeking the help of the court to force this company return $19,176 as penalties and $5,500 as costs to the clients.

Apart from warning the people about the scams Miller advised that the sufferers should contact bonafide counselors and contact immediately the lenders without delay. This might work out to an amicable viable solution to the problem. Rescue scammers on the other hand make the situation worse.

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