Seniors More Vulnerable To Foreclosure Scammers

February 27th, 2008 | Tags: Foreclosure

Vultures in the form of scammers are trying to pick the bones of the foreclosure victims but when special focus is concentrated on the senior citizens the action seems all the more reprehensible. The seniors more often than not depend upon the equity of their houses to augment their fixed income. Recently a hearing was held about the impact of foreclosures on the elderly by Senate Special Committee on Ageing. It was chaired by Senator Herb Khol (D-Wis). Scammers hone in on them because in comparison to others they have larger equity on their properties.

Foreclosures scammers take up different approaches but the running theme is that they make false promises that they will permanently save the house from the clutches of foreclosure. But invariably the houses are lost together with the money paid to the scammers who disappear with the title and equity of the units. Thus the situation of the house-owner facing foreclosure actually worsens.

The case of 72 year old Walter Malone is one such instance. He fell behind by $8,400 in his mortgage repayments and received the inevitable foreclosure notice. Scammers getting the necessary information from public records began to repeatedly contact him with soothing words of assurance. They sound convincing when they urge the house owners not to contact legal experts as they have no hope going through them. One such con artist told Malone that he would advance the money to stop the foreclosure and also to make necessary repairs. Malone gave the necessary signatures only to learn later that he had handed over the deed to the house to one of the associates of the scammer. The purchase price was stated to be $157,987 but only $10,000 was given to make the mortgage current. No money was given to Malone – but the mortgage continues to be in his name. As per the new agreement Malone has to pay the associate the mortgage money plus some hundred dollars. The house can be bought back if he managed to pay $215,000 in 12 months time. Malone joined hands with five other senior duped victims and filed a case against the scammer and his associate. Finally Malone managed to continue to stay on in his house.

The house is not just a building of bricks and mortar – it is a home. People may have been born in it or lived in it for decades. Throwing them out is like putting the entire society off gear.