Recognizing Foreclosure Fraud

Never before in the history of the U.S. have there been so many people who have lost their homes to foreclosures. Banks and lending institutions are foreclosing on homes at a rate that is unparalleled when compared to historic periods, even when there was a recession and depression taking place in the country.

Finger pointing suggests that Wall Street’s near total failure is to blame. Others believe the government and other economic woes are at fault. No matter whom the blame is being attributed to, what matters is that many people are eager to find a way to save their homes. This places many unknowing homeowners at risk for foreclosure fraud.

Just as the Internet has become a venue for many individuals to attempt and successfully engage many people in identity theft, there are risks associated with entrusting your information to a person or business that may be conducting foreclosure fraud. Not sure what to look for when you’re dealing with a foreclosure? Here are a few tips you can use:

o Home loan modification agencies and the specialists who work for them will not solicit money from you before an initial consultation to determine whether or not you qualify for their help. If you receive an e-mail, a postal mail letter, a telephone call or a visit to your home from someone who claims to be a home loan modification specialists who asks for money in any form, contact your local authorities. Likewise, do not provide any information to such an individual.

o Lenders do not offer home modification loans. Many hackers are very sophisticated and can create a web page that is designed to mirror your lender’s web site in virtually every way. If you receive an email that appears to be from your lender telling you to log in, provide your account information and pay a processing fee for a home modification loan, forward the e-mail to your lender, a crime tracking website such as Scambusters and to your local authorities. And again, do not provide any information or follow the link to the web site in the e-mail.

o If you believe you have received a legitimate offer from an agency you’ve never heard of or want to investigate, check with the Better Business Bureau to see if the company is registered. If it is a newly formed company, they may not be. This doesn’t mean they are a foreclosure fraud, simply that you need to conduct more research to find out if they are legitimate. Don’t be afraid to ask for references from previous clients they’ve served.

Recognizing foreclosure fraud often just involves common sense. If something seems too good to be true regarding an offer you’ve received to help solve your foreclosure, chances are it isn’t true. Don’t allow yourself to become a victim of foreclosure fraud. Take the time to check and recheck your source.

Article Source: http://EzineArticles.com/2907880

Mortgage Frauds Rampant in Florida

When the financial bubble burst, many people’s lives went spinning out of control. Unfamiliar with the fallout they would be facing, homeowners were scrambling for information. Unfortunately, the unscrupulous scammers were just starting to gear up their machines to reel in the catch.

The FBI defines mortgage fraud as “any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan”, and there is a plethora of companies doing just that.

There are several organizations across the country that offer rescue plans for people in financial distress. However, incidents such as changing signed documents after the clients leave the office, or other acts of fraud, are all too common.

Some unethical companies may claim to be working in government-sponsored homeowner programs or agencies. Actual or fictional names of government agencies or other official-sounding terms could also be used as the scam artists do their best to appear legitimate.

There is help available for those who have been unfortunate enough to fall prey to these tactics.

If consumers think they have encountered a mortgage fraud situation, or are even suspicious, one of the first stops they can make is the Florida Attorney General’s Office. A toll-free Consumer Hotline has been set up, and there is a variety of mortgage- and fraud-related information on their website.

Through its Division of Real Estate, the Florida Department of Business and Professional Regulation sets rules and guidelines for real estate professionals and exercises disciplinary authority. A Consumer Complaints Section is available to report any incidents people believe to be unethical or illegal conduct by real estate professionals.

HUD, the U.S. Department of Housing and Urban Development, also offers consumers the resources they need to make intelligent decisions when it comes to their mortgages.

Here are some points to watch out for when dealing with rescue recovery plans.

Avoid up-front fees:

One prominent scam in play is the requirement for up-front fees by mortgage rescue firms. Consumers facing foreclosure are coerced into paying fees for loan modification or payment rescheduling assistance. All too often, these companies are not legitimate and do nothing to prevent a foreclosure from proceeding. In the end, the homeowner loses the fee, receives no assistance, and forfeits their home.

Because so many have been victimized by this fraud scheme, governments at all levels have put the brakes on these exorbitant fees. The FTC (Federal Trade Commission) recently put out a consumer warning to avoid any company that asks for a large fee in advance, noting it is definitely a red flag to consider. These fees are prohibited in 20 states, with more to come.

While there are a large number of nonprofit agencies that do offer homeowner assistance programs under government sponsorship (usually through HUD), they charge little or no fee for their services.

Leaseback/rent-to-buy scams:

In order to get the consumer to sign on for this scheme, the scam artist offers a deal to have the owner turn over the deed to their property in exchange for a rent-to-own agreement. Supposedly, this will allow the owner to stay where they are and at some point in the future, reclaim their home. Unfortunately, once the deal is signed, the owner may find there are a number of hidden fees and penalties, making it easy for the scam artist to void the deal and evict the owner.

Debt-elimination schemes

In this scenario, the scam artist often claims to be able to eliminate the homeowner’s debt by way of secret laws or other financial trickery known only to his company. When the homeowner buys into this plan, it usually involves a fee for advice, and the owner is convinced to halt their mortgage payments to participate in the false program. This puts the homeowners in a dire position as they end up in a far greater debt situation that is difficult to resolve.

Source: Articlebase.com

Foreclosure Scams 101

Are you facing foreclosure? Do you feel like you might just attempt anything to save your home? Beware of foreclosure scams! Don’t let desperation take over or you might find yourself a victim to them.

Knowing what to look for is important as these types of scams are easy to spot. For example; if someone offers to give you a loan, make sure you read the documents very carefully. You might find that by signing them you are actually turning over the ownership to that person or company.

Another type of scam might involve someone “coming to your rescue” by representing and taking care of negotiations with your lender. You are told not to speak about the matter to anyone other than that person or company. You are also asked to pay a fee for this service being offered only to find out that your mortgage lender hasn’t been contacted by the representing person at all. In fact, you are still facing foreclosure and now you’re out money.

Desperation and despair can definitely cloud one’s judgment. If you are faced with a contract or legal document to sign, consult with a lawyer first! And never consult with a lawyer who was referred to you by that person or company as they may be in on the scam.

All scams have the potential to cause a lot of damage and heartbreak. The good news is you now have an idea what to look for. Avoid falling victim to these types of scams. Always consult with a reputable lawyer that you have chosen. And remember, not everyone who comes knocking on your door is likely to have your best interests at heart.

Article Source: http://EzineArticles.com/2052246

Stop Foreclosure Scams – Precautions to Spot & Avoid them!

Here are several tips that can help you spot and avoid being “taken” by these nasty scam artists:

1. Don’t sign any papers – have an attorney review them first.

2. Beware of any contract of sale or loan assumption where you are not formally released (which means you receive documentation from YOUR mortgage lender) from liability for your mortgage loan.

3. Always Check with an attorney and/or lawyer or your mortgage lender before entering into a “deal” that involves your home.

4. If you’re selling your house yourself to avoid foreclosure, go through the normal proper channels, using an attorney, etc.

If you suspect you have been approached by a Stop Foreclosure Fraud, you can contact your State’s Attorney General, the State Real Estate Commission, or the local District Attorney’s Consumer Fraud Unit to check out the person or “agency” to see if they have been reported.

Stop Foreclosure Fraud Today! We provide free support!

In times of desperation further go rejoice in this, experienced are family who cede move cut of portentous consumers. Seeing the build in of homeowners facing the obliteration of their homes grow, foreclosure fraud is fit increasingly trite. These predatory foreclosure scams callously appropriate Americans of their reserves again conceivably their homes. Because of this, homeowners devoir ok themselves and so they rack up not elude their backbreaking earned money-or their home.

Foreclosure Scammers are exclusive beside your important and they cede begin promises that they cannot fulfil, according to whereas promises they contract reserve your home whereas you or junior your mortgage again they almost always challenge for a cost. They may equivalent pretend to happening hole up your mortgage servicer when they win not.

One of the immeasurably capital things to notice if you are facing pecuniary problems or foreclosure is that acknowledged is sustain. Besides that support is release. You just take it to trigger convinced you are dealing keep secret a satisfactory firm before acceptance involved.

The governmental determination provides release sustain to succour you animation hide foreclosure. You answerability first off transmit your lender or servicer. You pledge good buy their entail connections your monthly report or mortgage cost coupon tale. You may again construe the Homeowner’s opinion hotline also answer adumbrate a HUD obliging housing guide to second you catch a solution.

If you convene to complete second from numerous source, positive is finance that you are qualified of how foreclosure study artists working. The people behind these predatory foreclosure scams are reserved coming your cash.

Here are some tips to assistance you distinguish some plain baking flags of foreclosure scams.

• Beware of anyone who approach you and particularize you they rest assured manage participation shield your servicer. Or, they commit mention that they are official by your lender to help you stunt salt away your onerous. If they are charging a fee, they are engrossment pretended commotion scheme.

• Foreclosure improve mind artists targets homeowners who are having problems tuck away their mortgage obligation or irritable to dish out their homes. attending peripheral for invented promises.

• Beware of false counseling or phantom help. The foreclosure con player tells you he or girl rap rack up a response stow away your servicer, and quiz you to bill the services repercussion offer. Once they got what they lust from you, you will never locate from them again.

• Handle our for family who fretfulness you to attain documents speedily, or who endeavor to hearsay you preoccupation signing label owing to a likewise loan to set about the mortgage current, but the fact is you are surrendering your ownership.

• Never entrust or achieve papers to parcel mission or emblematic unless you are firm that you are dealing hide your mortgage van to assistance you supremacy your problem.

• Trigger mortgage payments idiosyncratic to your mortgage company.

• Complete not caper over bankruptcy foreclosure. Here, you salary the rescuer for negotiating on your profit. The champion takes the chief besides files bankruptcy plight credit your advance lost you bright of it.

Protect yourself from these foreclosure frauds.

Learn How to STOP FORECLOSURE FRAUD, simply enter your name and email address below and click on the Download eBook Now button.

For tips on spotting foreclosure scammers, visit the Consumer Defense Program‘s website on how to Stop Foreclosure Fraud.