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Scammers Pounce On Home Foreclosure Victims
Millennium Radio New Jersey ^ | Monday, August 27, 2007 | Racquel Williams

Posted on 08/27/2007 5:08:43 AM PDT by Calpernia

The volatile sub-prime mortgage market has resulted in thousands of people being scammed by fake mortgage foreclosure rescue companies that promise big results, but end up draining the wallets of those who are about to end up on the street.

Homeowners say they were either contacted directly by a mortgage foreclosure rescue company or came across a web site while searching for help to stop foreclosure on their home. The companies claimed they would re-negotiate the terms of their mortgages and stop foreclosure actions.

Many paid as much as 13-hundred dollars with nothing to show for it. Melissa Companick of New Jersey's Better Business Bureau says to always check with www.bbb.org to make sure the company is legitimate. She also advises people to never sign a contract under pressure...and to talk to your lender first.


TOPICS: News/Current Events
KEYWORDS: foreclosure; notvictims; scam; subprime; victimologists; victimology; viticmsnot

1 posted on 08/27/2007 5:08:44 AM PDT by Calpernia
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To: ex-Texan

ping


2 posted on 08/27/2007 5:09:25 AM PDT by Calpernia (Breederville.com)
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http://www.bbb.org/alerts/article.asp?ID=790
Mortgage Foreclosure Scams on the Rise, Warns the BBB

Arlington, VA—Across the U.S., homeowners facing mortgage foreclosure are being scammed by foreclosure “rescue” companies promising to save their house but that only take their money. In light of this emerging trend, the Better Business Bureau (BBB) warns that gloomy forecasts for the housing and financial markets means that increasingly more people could fall prey to mortgage foreclosure scams in the coming months and years.

“According to estimates, as many as 1.7 million homeowners could lose their house to foreclosure in the next couple years,” said Steve Cox, spokesperson for the Better Business Bureau. “These people will be in the desperate position of trying to save their home and they’ll look for someone to trust. Unfortunately, con artists are seeing their chance to step in and make a fast buck off of troubled homeowners from Palm Springs to Pittsburgh.”

In recent months, the BBB has heard from victims of foreclosure rescue schemes in almost all 50 states. Not surprisingly, states with the highest foreclosure rates—such as Georgia, Colorado and Ohio—have an exceptionally high number of complaints for companies offering foreclosure rescue. BBBs nationwide have received hundreds of complaints from homeowners who enlisted the help of unscrupulous mortgage foreclosure rescue companies and they all tell a similar story.

Typically, homeowners report that they were either contacted directly by a mortgage foreclosure rescue company or came across a Web site while searching for help to stop foreclosure on their home. The companies claimed they would renegotiate the terms of their mortgages and stop foreclosure actions, or the homeowners would get their money back. Victims, who were desperate to keep their homes, paid as much as $1,300. In the end, the companies did very little work or often nothing at all. Most victims, not only lost their homes, but they also have not been able to get promised refunds, either.

In the last three years, the Clearwater, FL BBB received 508 complaints for foreclosure services headquartered in their area. Of those complaints, 322 came within the last 12 months. The total amount of refunds requested by the complainants in the Clearwater area amounts to more than $600,000.

The Charlotte BBB reports that last year only two mortgage foreclosure rescue companies operated in the Charlotte area, but now the number has now jumped to 15—six of which have government actions against them including cease and desist requests, temporary restraining orders or consent judgments.

The Cleveland BBB reports a similar dramatic increase—21 new companies offering mortgage foreclosure rescue opened in the Cleveland area in the past year alone.

“BBBs across the nation are hearing the same story from victims over and over again.” added Cox. “Desperate homeowners are duped into a false sense of security by crooked companies and think their prayers have been answered and their homes will be saved. Unfortunately, many people are losing a lot of money and their houses through untrustworthy foreclosure rescue operations.”

The BBB offers the following advice for homeowners facing mortgage foreclosure:


3 posted on 08/27/2007 5:12:05 AM PDT by Calpernia (Breederville.com)
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To: Calpernia
OH, I get it!!!!!

We need more gov't intervention the markets.

To protect the children from mean ol' Republicans!@

4 posted on 08/27/2007 5:14:11 AM PDT by BlabItGrabIt (Sly, Shy, and Wry)
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To: BlabItGrabIt

I don’t think the BBB is an arm of the government.


5 posted on 08/27/2007 5:15:16 AM PDT by Calpernia (Breederville.com)
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To: Calpernia

They were dumb enough to buy over priced homes out of their budget and signed variable rate mortgages. Once a fool, always a fool and ripe for these scammers.

There’s a current tv commercial from some financing company or something. I don’t know the name because I’m usually hollering at it too much to notice. Anyway, a hispanic woman with a distinct accent saying, “It’s not my fault I can’t make my home payments”. Excuse me? It’s certainly not my fault but the rest of us will have to bail you out one way or another. I highly suspect it’s directly aimed at those illegals who the banks were shelling out loans to left and right. Totally disgusting.


6 posted on 08/27/2007 5:16:11 AM PDT by mtbopfuyn (I think the border is kind of an artificial barrier - San Antonio councilwoman Patti Radle)
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To: Calpernia
I once had a Min-Pin that used to wait until I would fall asleep in my recliner then she would run all the away across the room and ponuce on me. I hated when she did that but she seemed to get a really big kick out of it.


7 posted on 08/27/2007 5:17:20 AM PDT by sinclair (The constructs of man often leave matters wished for.)
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To: Calpernia
The volatile sub-prime mortgage market has resulted in thousands of people being scammed by fake mortgage foreclosure rescue companies that promise big results, but end up draining the wallets of those who are about to end up on the street.

Life's tough. and if you're stupid it's even tougher (John Wayne)

8 posted on 08/27/2007 5:18:44 AM PDT by from occupied ga (Your most dangerous enemy is your own government, Benito Guilinni a short man in search of a balcony)
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To: Calpernia

A friend refinanced their house through a local boiler-room type home-refi outfit, which wrote a new mortgage, sold it to Wells Fargo, but never paid off the old mortgage. As a result, my friend had two mortgages on his house instead of one, and two mortgage holders demanding to be paid.

Things got real ugly, real fast. Send lawyers, guns and money, because the sh!t has hit the fan. He wound up paying both mortgates while things sorted themselves out. At the end of the day, Wells Fargo walked away from $450,000, and my friend is back to his original mortgate, about $20K poorer.


9 posted on 08/27/2007 5:21:56 AM PDT by gridlock (If you are getting too much publicity, fire your publicist!)
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To: Calpernia
In this overall picture, it doesn’t seem 1.7 million foreclosures over the next few years would bring the real estate industry/financing to it’s knees.
10 posted on 08/27/2007 5:22:40 AM PDT by stylin19a (Go Bears !)
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To: Calpernia

Gee, a stupid person was taken more than once??? I thought there was a one-stupid-transaction limit per stupid person, and then you were “innoculated” against further stupidity.

Imagine!


11 posted on 08/27/2007 5:24:04 AM PDT by Larry Lucido (Hunter 2008)
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To: stylin19a

????


12 posted on 08/27/2007 5:24:22 AM PDT by Calpernia (Breederville.com)
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To: Calpernia

I just caught thirty seconds of Good Morning America, featuring Jane So-And-So who is “a recent VICTIM of falling home prices” because she (GASP!) had to lower the price of her home to less than she paid for it.

She’s not responsible for her free decision to pay more for her house than it was worth, nor is she accountable for the consequences. No, the poor thing was victimized by evil forces beyond her control or foresight.

Look for the “underwater homeowners are victims” meme to get ever-wider play in the press. The mortgage scams are unfortunate and reprehensible, but news about them will be pressed into service and made to fit the socialist agenda as well.


13 posted on 08/27/2007 5:24:55 AM PDT by Nervous Tick
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To: gridlock

Will the IRS consider the forgiven mortgage income?


14 posted on 08/27/2007 5:25:18 AM PDT by Calpernia (Breederville.com)
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To: from occupied ga; mtbopfuyn

You two beat me. And quite eloquently, I might add.


15 posted on 08/27/2007 5:25:21 AM PDT by Larry Lucido (Hunter 2008)
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To: Nervous Tick

The thread is a heads up on rescue scams.


16 posted on 08/27/2007 5:27:13 AM PDT by Calpernia (Breederville.com)
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To: Calpernia

Yes. Unless they file bankruptcy.


17 posted on 08/27/2007 5:28:01 AM PDT by Larry Lucido (Hunter 2008)
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To: Calpernia

I understand, but we are warned against religious hucksters and folks still send money to Benny Hinn.

They say you can’t fool an honest man, or something like that. The converse is you can always fool a greedy man.


18 posted on 08/27/2007 5:30:04 AM PDT by Larry Lucido (Hunter 2008)
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To: Larry Lucido

Spreading the word can save some though.


19 posted on 08/27/2007 5:31:38 AM PDT by Calpernia (Breederville.com)
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To: Calpernia
Will the IRS consider the forgiven mortgage income?

Goodness! It is not a complete screw-up until the IRS is involved!

Since he never got the money from the first mortgage pay-off, I think my friend is in the clear from the IRS. I don't know how much of his lost money he will be able to deduct as interest, though. I dare say his lawyer is going to earn his money preparing this year's tax return.

20 posted on 08/27/2007 5:31:51 AM PDT by gridlock (If you are getting too much publicity, fire your publicist!)
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To: Calpernia
"victims"?? these people are victims?

victims of their own stupidity perhaps. read the contract before you sign next time.

21 posted on 08/27/2007 5:34:14 AM PDT by wny
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To: gridlock

>>>Since he never got the money from the first mortgage pay-off, I think my friend is in the clear from the IRS.

Might be a good idea for him to look into that though.


22 posted on 08/27/2007 5:37:09 AM PDT by Calpernia (Breederville.com)
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To: Calpernia
“According to estimates, as many as 1.7 million homeowners could lose their house to foreclosure in the next couple years,” said Steve Cox, spokesperson for the Better Business Bureau

this story is just another add-on to media hysteria surrounding the supposed failing/falling real estate industry.

I've been asking questions like this since the "sky is falling" people showed up about 5 years ago
23 posted on 08/27/2007 5:37:33 AM PDT by stylin19a (Go Bears !)
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To: wny

Now of the information on the BBB site indicates they signed a contract.


24 posted on 08/27/2007 5:38:30 AM PDT by Calpernia (Breederville.com)
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To: stylin19a

I think you took it wrong though. This isn’t talking about bringing any industries to its knees. This is a heads up on a scam.


25 posted on 08/27/2007 5:40:46 AM PDT by Calpernia (Breederville.com)
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To: Calpernia

Now = none


26 posted on 08/27/2007 5:41:18 AM PDT by Calpernia (Breederville.com)
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To: Calpernia

I hate it when I get ponuced on!..........


27 posted on 08/27/2007 5:41:42 AM PDT by Red Badger (ALL that CARBON in ALL that oil & coal was once in the atmospere. We're just putting it back!)
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To: Calpernia

He has competent legal representation, at this point. It is a shame he did not before all this happened, of course.

From what I understand, Wells Fargo gave up on the transaction between the Re-Fi company and themselves. That is the loss they took. From a legal point of view, Wells Fargo never held a mortgage on my friend’s house.

We discuss the matter from time to time (needless to say, he talks about it, a lot!). I will pass along your good advice.


28 posted on 08/27/2007 5:42:33 AM PDT by gridlock (If you are getting too much publicity, fire your publicist!)
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To: Red Badger

Yeah, I had to look at that word several times too.


29 posted on 08/27/2007 5:51:11 AM PDT by Calpernia (Breederville.com)
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To: gridlock

If that was me, I would be talking about it alot too. Probably incorporated with several colorful metaphores.


30 posted on 08/27/2007 5:52:37 AM PDT by Calpernia (Breederville.com)
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To: Calpernia

Maybe she meant PO-Noosed.............

31 posted on 08/27/2007 5:53:50 AM PDT by Red Badger (ALL that CARBON in ALL that oil & coal was once in the atmospere. We're just putting it back!)
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To: Calpernia
That's not the point, as you are well aware.

This is a call to scare American into demanding these so-called bad guys {Republicans who lend money] are taken care of.

Liebrals know how to get sheeple to read between the lines!

32 posted on 08/27/2007 5:55:53 AM PDT by BlabItGrabIt (Sly, Shy, and Wry)
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To: Calpernia

they signed a mortgage contract didn’t they? the headline says “Foreclosure Victims”. I would agree they are “scam” victims.


33 posted on 08/27/2007 5:56:56 AM PDT by wny
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To: Red Badger

Racquel doesn’t post her news releases to the web. A guy named Jose Valentin does (not the baseball player). Many times with typos.


34 posted on 08/27/2007 5:57:09 AM PDT by Calpernia (Breederville.com)
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To: BlabItGrabIt

>>>That’s not the point, as you are well aware.

Actually, I’m not.

>>>Liebrals know how to get sheeple to read between the lines!

The rescue company scams are a backdoor scam to have the government intervene on the foreclosure industry?


35 posted on 08/27/2007 5:59:43 AM PDT by Calpernia (Breederville.com)
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To: wny

I don’t believe the rescue agreements had/has contracts.


36 posted on 08/27/2007 6:00:37 AM PDT by Calpernia (Breederville.com)
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To: Calpernia

I’m not talking about the rescue agreement. The headline says “Foreclosure Victims”. Foreclosure happens when the borrower can’t meet the obligations of their mortgage. No one gets a mortgage without signing a contract. If a borrower can’t meet these obligations and foreclosure results, they’re not a “victim” of forclosure. That’s not to say some responsible borrowers are not “victims” of some unfortunate event - illness, injury, unemployment or whatever - that leads to their default. But many people get in way over their heads because they take on payments they can’t handle, live way beyond their means or simply don’t read the agreement they enter in to. These people are not “Foreclosure Victims”. They’re victims of their own irresponsibility and/or stupidity.


37 posted on 08/27/2007 6:16:23 AM PDT by wny
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To: wny
>>>These people are not “Foreclosure Victims”. They’re victims of their own irresponsibility and/or stupidity.

Since that can been seen as redundant by some, I don’t understand why you are so hung up about the title.

38 posted on 08/27/2007 6:19:47 AM PDT by Calpernia (Breederville.com)
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To: Calpernia

39 posted on 08/27/2007 7:48:10 AM PDT by Gritty (The quagmire isn't in Iraq but at home Mark Steyn)
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To: Nervous Tick

Yeah if I bought a stock at $50 and the next day it goes down to $45 I’m a victim too. What’s always interesting to me is that the same people who are so eager to proclaim victim status when something goes down are only to happy to laugh all the way to the bank when something goes up. You’d think they’d be sorry for the poor bloke that sold them the underpriced asset and wanting to cut them in for a share of the profits. But you almost never see this happen.


40 posted on 08/27/2007 7:52:10 AM PDT by 2 Kool 2 Be 4-Gotten
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To: Calpernia
These scammers say, 'Don't worry. Everything's taken care of.' Some mortgage fraudsters just forge peoples' names.

FOX News Report

41 posted on 08/27/2007 10:03:44 AM PDT by ex-Texan (Matthew 7: 1 - 6)
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To: Calpernia
And do not forget all the flip my foreclosure fraudsters.

A&E /FOX News Investigates . . . LOL !

How many are posting right here on FR, hyping good news about RE every day . . . ?

42 posted on 08/27/2007 10:15:41 AM PDT by ex-Texan (Matthew 7: 1 - 6)
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