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Posts Tagged ‘scams’
How Do These Fraudulent Mortgage Scams Work?
I keep hearing about so many hard working people getting caught up with fraudulent people claiming to help those who are losing their homes to foreclosure.
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Can The Sites That Claim They Can Stop Foreclosure Really Do It Or Are They All Scams?
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Are There Scams Where A “foreclosure Buyer” Will Pose As A Loan Officer And Delay A Re-fi Forcing Foreclosure
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How Do I Find One Foreclosure Home For My Family And I With No Hassle Or Scams?
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Real Estate Scams on the Rise With Interest Rates
Realizing that you’re facing foreclosure on your home may be the most trying and traumatizing time of your life. Don’t aggravate the situation by becoming the victim of a scam perpetuated by smooth con artists who take advantage of your desperation and fear. They do this by promising to help you save your home, and they’ve been scamming people successfully for years.
Some of the cons being inflicted on homeowners dealing with foreclosure involve scammers who require upfront fees for their assistance. In one variation, the property owner is convinced that the scammer can communicate with the lender or mortgage holder more effectively than the homeowner. In return, the homeowners agree to render a relatively small fee or fees, typically about the amount of a mortgage payment, to the company or individual. It all appears to be a great situation till the lender continues to call and no deals are ever forthcoming. Then the property owners figure out that their “savior” has departed, along with their fees.
In another variance of this scam, the company or individual again claims to be better equipped to deal with the lender. In addition to some nominal fees, the homeowner is told to make their monthly mortgage payments directly through this new company. A few months may go by before the scammed owner becomes aware that no payments are actually making it to their lenders. These con artists steal multiple months of payments, and the property owners are further behind than ever and in much worse condition for having dealt with them.
Some distressed homeowners may be approached by a party that offers to loan enough funds to save the home, but with high origination fees. Because the homeowner already has difficulty paying the mortgage, they quickly fall behind again. Sometimes, this lender will offer to “bail out” or forgive the nonpayment. Each time, this scammer will add more and higher fees or administration costs. The loan increases in size and becomes more unmanageable each time this happens. Ultimately, any equity built up by the homeowner has been eaten up by fees and the scammer legally takes all profit made when they foreclose and sell the house. Or, the homeowner finds a way to make the ridiculously high payments and eventually pays off the loan. In either way, the scammer wins.
Homeowners dealing with foreclosure are often panicked and looking for a solution however farfetched. After receiving multiple late notices, phone calls and intimidating documents filled with legal jargon, it is no surprise that these desperate people are willing to believe that communicating with their lender will make things worse. However, this is rarely the case. Often, if you contact your mortgage holder early enough in the process, they will work with you to find a answer that is helpful for all parties involved. If nothing else, be sure to contact your legal advisor before you authorize a contract that claims to fix your problems. Only a professional advisor can tell you precisely what you are agreeing to.
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Spotting Mortgage Scams
With the recent real estate market downturn and condo bust affecting most states across the U.S., more and more homeowners are turning to refinancing to save their homes. First time buyers who are also experiencing the so-called credit crunch are also broadening their search for loan and mortgage companies. This new group of sometimes inexperienced and desperate customers has given fraudulent mortgage companies and scam artists plenty of fresh targets and prompted even more creative ways for them to part you from your money instead of offering financial aid. But there are certain tell-tale signs that should put you on the alert for fraud and potentially save you and your home from foreclosure and bankruptcy.
According to the Financial Crimes Enforcement Network, reports and complaints of mortgage fraud have increased dramatically over the past two years. From the 15,000 they received in the first three months of 2008, they estimate they will have more than 60,000 before the year is over.
The most common scams for homeowners desperate to save their homes from foreclosure are variations on refinancing schemes. Say a homeowner has missed a payment on their original loan or is barely able to make the monthly payment anymore. Suddenly you are approached by someone claiming to be a representative of a loan company who is willing to refinance your home and reduce your monthly payments. This sounds like a complete blessing, but in fact it’s a curse of sorts. The fine print on the contract confirms that your lower payments are only covering the interest and in a few months the balance will come due in a balloon payment that you cannot possibly afford. Once that happens, your home will be facing foreclosure immediately.
Another refinancing scam is where a lender comes along and offers to either personally guarantee a new loan or negotiate with your existing mortgage company for you. All you have to do it sign over your home temporarily to them and make payments directly to them. They will handle the rest for you. But what they are actually handling is your money and either not making payments for you or selling your home outright to another party. In both cases you will eventually discover that you no longer own your home, which shouldn’t be surprising since you signed the title away, and receive an eviction notice by the new owner or a notice of foreclosure by your mortgage company because they haven’t received your payments.
Reconveyance is when an individual or bogus company offers to purchase your home for you and allow you to make low monthly payments as a buy-back agreement. But by signing your home over, you once again leave yourself open to eviction and foreclosure as soon as you miss a payment.
Most pre-construction and new construction condos are initially marketed with lower prices or an incentive package. When you buy a unit from a reputable developer and do a little checking on previous projects they have completed, you can be reasonably certain it’s a safe investment. Most high profile luxury condos in Chicago like the ones listed here http://www.bestchicagocondos.com/luxury-condos/index.html are a safe buy.
But some developers and even real estate agents will get creative to sell units in a building that they want to sell out or need a certain amount of pre-sales to secure a construction loan. In those cases they may offer what seems to be unusually large discounts, thousands of dollars in free upgrades or even tax, loan or assessment breaks. To pay for these perks they often inflate the price of the condo and you end up paying more than the unit is actually worth even though you thought you were getting a great deal on extras.
Scammers will also try to attract would-be or novice investors into a high pressure sales seminar with the plan of pooling money and purchasing short sale condos or foreclosure properties and then reselling at a profit. Often times the organizers of these investment groups pocket the money and are never seen again or buy such substandard homes that a huge sum would need to be spent in renovations before the property could be sold at all, much less at a profit.
Even if you own your home free and clear you could be targeted. You might be approached by a lender tempting you to take out a mortgage you don’t need just to have extra cash to spend. Or you might have a contractor show up who was just in the neighborhood and offer to do what they describe as much needed home repairs and can arrange financing for you. If you agree to this and sign paperwork, you may find yourself in debt for a large sum of money and be held hostage by a contractor who has perhaps ripped off part of your roof and won’t finish until you pay.
You should also be wary of any lender who offers immediate credit in exchange for your sensitive information such as Social Security number, bank account numbers or anything else. Also never sign any type of contract you haven’t read, had an attorney read, or that has blank spaces that can be filled in later. Always demand a copy of all paperwork no matter how insignificant it may seem at the time. The best rule of thumb for any type of refinancing or mortgage offer is the same as every other offer in life; if it looks too good to be true, it probably is.
Paula Cherrist writes real estate related articles for Best Chicago Condos
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What Are Equity Skimming Scams?
Equity stripping is also called equity skimming and some people will term it foreclosure rescue scam, which is when low-income earners face foreclosure. It was late 1999 that some equity scammers took the properties of low-income earners, such as their homes. It happens so because, they took loans and never pay in time or did not fulfill the conditions of the loan. At times some money lenders lend out their money at a very high interest rate. So, these homeowners are made to even rent their own homes form these money lenders as tenants. This equity stripping scam issue usually happens to low-income earners who own a home. This equity stripping scam issue usually happens when the low-income homeowner has entered a complex transaction with a money lender; the homeowner will be unaware that he or she is selling the property. Some few years back, most states in the United State have looked for a means to fight against all these unscrupulous money lenders.
Many people may look at equity stripping as a means of lending money to people and taking excessive money as charges. That is, removing the homeowner out of the home if the charges are not paid. This practice often shows foreclosure.
Trends have been made in the United States economy to open a market so that foreclosure, equity stripping scam is legal. This has made the values of properties to increase between 2000-2005. As the values have increased, the rate of foreclosure in 2001 has risen leaving the many foreclosed low-income earners with equity.
Homeowners may notice that they have fallen into foreclosure, when they find their names on newspapers or reported by a mail distribution service.
Solicitation can take place, when a homeowner has been foreclosed. That is some other person may still meet the foreclosed homeowner for another deal, if he or she is qualify to take a different loan for a commission to be paid to this person who is making the arrangement . When a home has been foreclosed, an investor can still come and pay the amount owed by the homeowner and acquire the home. The investor may still will back the home to the homeowner under a different condition (lease or contract deed). The homeowner then remains in the house and pays rents. But, there are laws in most of the states today that protects equity stripping scam, which was passed into law since 2005. At times, this foreclosure stuff may be beneficial, when the charges of the loan are low. The foreclosure stuff can be beneficial to the homeowner, when here arranges and still stay in the house as a tenant, but later on you can still repair your credit and own the home again.
Home owners facing foreclosure should be very careful about who they talk to as there are many scammers out there only interested in taking away their homes. There are many government run agencies in every state where the home owner can turn to. One of the most important things is for the home owner to talk to their lender.
Eric Mabo is an Atlanta foreclosures Expert. He helps people find discounted real estate deals. His Website is http://www.doyenrealty.com
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Foreclosure Assistance: Learning To Spot The Scams
There is no doubt that more and more people have been forced into financial difficulties by the collapse of the US housing market, and are now being faced with home foreclosure. And with the rising number of requests for foreclosure assistance, there has been an accompanying increase in the number of foreclosure assistance scams. To make matters worse, those responsible for the scams not only walk away with their victim’s cash, they often walk away with the titles to their homes too.
Even if you have received a foreclosure notice, you should not panic and reach for the first offer of foreclosure assistance. You need to learn how to recognize the tricks which foreclosure assistance crooks use to swindle those in your situation.
The Equity Skimming Scam
The stress of being in financial difficulty can very easily cloud you judgment, and this is especially true if you are confronted with the looming loss of your home. One of the scams perpetrated by fake foreclosure assistance companies is Equity Skimming.
In the Equity Skimming scam, an unsolicited offer is made to find a buyer for your home so that you can clear up your debt s, and the individual making it requires you to sign your home over so that you will no longer be facing foreclosure, with a promise that you will be paid some of the profit when they sell the home.
But once you have transferred title to your home, the scammer will simply rent it out for a while, pocketing the rent while the bank proceeds with foreclosure. You have lost your home, and will remain liable for the unpaid mortgage, because transferring the deed did nothing to transfer your mortgage obligation. You are out not only whatever you paid the scammers, but your home as well.
Fake Counseling Services
Then there are the fake foreclosure assistance counseling services. They tell you that for a minimal fee you will be able to have their experts negotiate with your mortgage holders to get the foreclosure assistance you need They promise to relive you of the burden of having to deal with your mortgagor on your own, saying that their expertise in such matters will enable then to get you the best possible deal.
But more often than not, the only methods of foreclosure assistance they are capable of offering are those you could practice on your own, at no cost. The best they can do, if they even do that much, is get you a short-term grace period of lower monthly payments while you look for alternative sources of money to pay off your mortgage default. For more info see http://www.myfinancialbliss.com/foreclosure/foreclosure-assistance-18 on foreclosure assistance.
Do not accept any offers of foreclosure assistance which are not spelled out in writing. And do not agree to any agreement without first having it reviewed by an attorney familiar with foreclosure. Finally, if you suspect you have been targeted by a foreclosure assistance scam, contact the Consumer Fraud Unit of your District Attorney’s office without delay.
You can also find more info on foreclosure prevention and foreclosure refinance. Myfinancialbliss.com is a comprehensive resource to get your all financial solutions.
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Home Mortgage and loan Scams!
The thought of owing more than your home is worth or being months behind on your mortgage can make you easy prey for Scams. Many companies who appear to be legitimate saviors may end up kicking
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Any Website Links Where I Can Look For Foreclosure Relief Scams?
For the past 11 months, I have been trying to work with my lender. I have stayed in contact and complied with everything I was told to do. My mortgage payment went up $500 a month 3 times in one year (bad loan- adjustable rate)- now I am close to foreclosure and have no idea where to turn. A co-worker referred me to a company she is working with to save her home. I need to be assured they are not part of a scam operation, taking advantage of the vulnerability and desperation of so many people who may lose their homes. This company is not BBB accredited but they were on our local news station a couple of months ago. Any beware of scam links? Thanks so much!