Tuesday, February 26, 2008

Foreclosure rescuers; the latest scam


As if it's not bad enough that so many people are faced with the thought of losing their homes right now, it's even worse to hear that there are phony "bail out" companies taking advantage of homeowners that are trying to avoid foreclosure. Unfortunately "foreclosure rescuers" are popping up everywhere, preying on homeowners when they're at their weakest.


Foreclosure Rescue Management is the latest addition to these scam groups that trick needy homeowners into signing away their most precious asset. These companies approach struggling homeowners and tell them they can help them to avoid foreclosure by refinancing their debt. All homeowners need to do is sign over their home's title for a year while the company cleans up the debt. Problem is that during the year these companies sell the titles to buyers who in turn demand high rent from the original owners. When they can't afford to pay it, they receive eviction notices. Once homeowners have fallen for the scam it's almost impossible to get out.

It's really a shame that these companies are thriving right now, but what should we expect. In Cleveland over 20 mortgage fraud companies opened last year alone. Currently there are twelve states fighting back with new anti-fraud laws. Unfortunately Arizona is not yet on the list. Nothing worse then these bottom feeders in my opinion...


1 comment:

Anonymous said...

In Cleveland over 20 mortgage fraud companies opened last year alone.


___________________
Julie
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