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.

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Loan Modification and Foreclosure Scams

Sadly, there are a few bad apples out there in the form of phony consultants. This does not mean that all foreclosure consultants are dangerous news. There are some straightforward ways that you’ll be able to try the person or company you’re considering operating with.

First, several states need a foreclosure consultant to be licensed. If you reside in such a place, you’ll raise the person if they (or the corporate) are licensed in your state. Conjointly, you’ll be able to check on-line or by phone the records of the business with the BBB (Better Business Bureau). If there are complaints concerning this business, the BBB will be ready to inform you in advance.

The best approach to search out a good foreclosure specialist is to depend on the recommendations of friend and family. If you recognize someone who has faced foreclosure, raise them what they did to stop it and who helped (if anyone).

Foreclosure consultants can be very helpful to the house owner who wants facilitate to stop foreclosure. If you are not assured in your negotiation tactics or simply do not apprehend what to do, they can give assistance and guidance. Most specialists supply a free consultation so you can notice out while not risk what they can do to assist you.

Using a deed in lieu of foreclosure is turning into a a lot of common resolution for householders to escape the pain of the foreclosure process. They will not be in a position to save lots of the house using this technique, but it can effect a mutually beneficial solution to the matter with the lender. The owners will have to allow up title to the property, however this could be a better solution than having it forcefully sold out from beneath them at a county sheriff sale.

A deed in lieu of foreclosure would not directly have an effect on the foreclosure victims’ credit terribly abundant the least bit, which is one of the few drawbacks of using this tactic, together with the fact that the house is not saved in the first place. Their credit report will show the mortgage loan’s status as being closed however reflecting the employment of a “Deed in Lieu.” This is only slightly higher than if the credit report just said the loan had been closed thanks to a full “Foreclosure.”

Jilting a house voluntarily isn’t an simple call, but it will provide the foreclosure victims an escape from the whole method and provide them the recent begin and opportunity they have to start the rough road of monetary recovery.

People in or facing foreclosure are targets for foreclosure scams from stop foreclosure firms, loss mitigation companies and Attorney based mostly Loan Modification companies.

You ought to think twice before signing something and consult an attorney or state regulators that govern corporations helping folks stop foreclosure. Please create positive they need a contract on file and are licensed in your state and willing to use the U.S. Postal service for pickup and delivery of funds and documents. If a stop foreclosure company can not use the U.S. Postal service they will be trying to avoid mail fraud charges if they’re not a legitimate stop foreclosure company.

You must understand all your options. If you are considering selling your property, get 3 agents from completely different offices to do a Comparative Market Analysis. It’s free, and you’ll have a sensible plan of the worth of the home.

About the Author
The National Hope Foundation of one of the largest Non-Profit Organizations in the United States . We are dedicated in helping every single Homeowner who may be looking to stop foreclosure, who may be facing foreclosure find real solutions that can allow them to save their homes. Our entire organization’s goal Stop foreclosure and to get the homeowner and their family the assistance and help they deserve to save their home. Don’t lose hope you can Stop foreclosure Fast today!

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

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There are 50 states in our union, and each state has its own way of dealing with foreclosures. Many states deal with them in similar ways, but there are two main categories or types:

1. “Redemption State” and

2. “Non-redemption State.” What is a redemption? A redemption period is a time after a foreclosure auction that the homeowner has to payoff the foreclosure. We’ll get into that in more detail later, but for now, you need to find out whether or not your state is a “redemption state.” The important thing to know about redemptions is that if you live in a redemption state, you may have a time period after the sheriff’s auction (foreclosure sale) to pay off the foreclosure.

That’s right, in a redemption state, the foreclosure sale isn’t the end. Some redemption periods are as short as 5 weeks and in some states it may be as long as 12 months. This isn’t as much of a secret as it is an encouragement for you to get off your carcass and do your own homework on how foreclosures work in your state.

Stop Foreclosure Fraud and Illegal Practices – Attorney Generals Deliver Banks A Message

For the tens of thousands of families that have been displaced by foreclosure fraud and illegal practices many banks employ, the efforts in Washington to stop foreclosure fraud practices may seem drawn out with no end in sight, however some positive news was delivered over the past week. Attorney Generals (AGs) met with the nation’s five largest mortgage lenders to discuss a possible figure that they may be liable for due to the rampant foreclosure fraud that has seized the country since last year and the exposure of many fraudulent bank practices, including “robo-signer” scandals.

Stop Foreclosure Fraud – Washington Is Taking Notice

Last week on Tuesday the AGs said that the banks may face a liability of more than $17 billion dollars in civil lawsuits by homeowners and families determined to stop foreclosure fraud from stealing their home or seeking justice for an improper and illegal foreclosure. The AGs said this number could be much higher, especially if the banks do not reach a settlement that would realistically address the billions of dollars in damages they have caused. The estimated liability they say does not include billions more in possible claims from federal groups and agencies including the HUD and Justice Departments.

Also the Justice Department recently required the banks to pay them an additional $500 million dollars on top of an already $1 billion for fraud in bankruptcy cases. This issue and ways to address and stop foreclosure fraud is not going to just be swept under the rug or ignored. The courts are recognizing that there are serious allegations and proof of fraud and illegal practices being conducted by the country’s biggest banks and lenders. That cannot go unnoticed or unaddressed.

Stop Foreclosure Fraud Not An Easy Task

While many analysts believe that the $17 Billion dollar liability figure is extremely low, this is a move in the right direction, with the AGs standing their ground and not accepting the paltry numbers the banks were previously proposing. Still many issues remain before a potential settlement can be even close to final and address the issue of how to stop foreclosure fraud. With the magnitude of fraud, overwhelming number of cases and evidence, several AGs are still conducting investigations while many others have expanded their task forces and searches to address the overwhelming casework and complaints that has piled up. New York and California are among the states that have expanded their investigations and created new task forces to assist the already ongoing investigation.

Stop Foreclosure Fraud Efforts Are Not Useless

While many homeowners may have lost faith in the judicial system and their concern to stop foreclosure fraud, considering that not a single mortgage company executive or higher up employee has been held accountable for the massive fraud that has rocked the economy and housing market, the Attorney Generals are not backing down. They are sending a clear message to the big banks and lenders that they will not settle for a handout with this issue. The banks need to pay up and rectify the situation they created.

For more information on how to fight foreclosure and save your home, please visit stop foreclosure

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