06/11/2009
Mortgage Foreclosure Scams on the Rise, Warns the BBB
Foreclosure “rescue” companies may promise to save your
home, but only empty your wallet
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.
“According to estimates, as many as 1.7 million homeowners could lose their house
to foreclosure in the next few years,” said Brodie White, President, BBB of Southeast Florida and the Caribbean. “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.”
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.
“The BBB is hearing the same story from victims over and over again.” Said White.
“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:
· Contact your BBB or go to www. bbb.org to request a free Reliability Report
before paying any “rescue” company. You can also check with your state
Attorney General and state Real Estate Commission.
· Beware of the personal approach. Some less than ethical
businesses will stuff a handwritten note in your front door or mailbox that implies that “help”
is available from someone who has your best interests in mind.
· Talk to your lender. The first thing you should do is talk to your mortgage
Company about how to restructure your loan payment or refinance.
· Never sign a contract under pressure and never sign away ownership of your
property. Ask a trusted family member, your attorney or a financial
professional to review any paperwork you may be asked to sign.
· If you feel you have been taken advantage of by an unethical mortgage
foreclosure “rescue” company, file a complaint with your BBB at
www. bbb.org.
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