It seems recently that there is not a week that passes by that I do not hear of another freakin' scam ring out there taking advantage of homeowners that are going into or are in the default stage on their mortgage loan. This sickens me! No, these people are not stupid for falling for such schemes. These are people that are scared of losing their home and desperate for help and feel a sense of relief when one of these supposed God-sent companies contacts them and offers mortgage salvation.
About a month ago while at my office I heard some of my fellow realtors talking about "Broker so and so" and "Realtor so and so" who had just been arrested by the FBI for fraud. One man even left his broker wife because he wanted no part of her shenanigans. Wise man. He resides in a home and she resides in a jail cell. It seems good old fashioned greed got the best of these people during the real estate hay-day of 2003-2006. It disturbed me to hear this water cooler talk.
I came home late tonight only to read about another scam ring that just got popped. Thank you God, Thank you FBI! Their ring leader is from La Habra, CA. Apparently the group of 19 skimmed 13 MILLION dollars in equity from 115 homeowners coast to coast under the guise of "mortgage rescue."
These scam artists are targeting homeowners trying to avoid foreclosure in the current housing downturn. Typically the scam works this way: Sales agents for the ring contact homeowners through mailings, offering rescue plans to those who appeared on lists used by banks and credit agencies to show owners near foreclosure. When the homeowners sought help, sales agents would steer them into a plan that called for owners to put an "investor" on the home's title.
In exchange, the homeowner would pay rent to the investor, typically a sum smaller than the original mortgage payment. In reality, the investor was usually an associate or family member of the ringleaders or someone recruited via the Internet. The convoluted paperwork often gave the investor the right to replace the homeowner on the title.
Within months the ring would take out a new mortgage on the property to take out the equity. Homeowners either were evicted or ended up in foreclosure when the investor stopped making payments on the new loan. This disgusts me!
I am a Realtor that has sworn to uphold a specific code of ethics. It is my fiduciary duty to be loyal to my clients and to act at all times in the best interest of my client and to put those interests above all others, including myself. Obviously these scam artists have chosen to deny the oaths they were once sworn into. Damn them! It is no wonder the general public has a biased opinion of us as being shady, greedy, uncaring, cut throat, etc. Of course, every new bust of a scam ring seems to be another nail in the realtor's coffin.
So what can folks do that are upside down on their mortgage loan or even going into foreclosure? My suggestion is to call their current lender or call 1-888-995-HOPE. Over 100,000 people were counseled in February alone and over 1 million homeowners in distress have avoided foreclosure!
Here is a bit of information that I have copied from the Hope Now website:
What is HOPE NOW?
HOPE NOW is an alliance between counselors, servicers, investors, and other mortgage market participants to maximize outreach efforts to at-risk homeowners and help them stay in their homes.
If I can't pay my mortgage, why should I call my mortgage lender/servicer?
Your mortgage lender can help you identify the options available to you, should you have trouble paying your mortgage.
When should I call my lender?
You should contact your lender as soon as you know you will have difficulty meeting your mortgage payments. You do not have to wait until your interest rate re-sets, nor do you have to wait until you are already behind in your payments. In fact, the sooner you call, the more options will be available to you. No matter what your situation is, CALL TODAY.
What if I don't want to call my lender?
Call the Homeowners HOPETM Hotline - 1.888.995.HOPE. This hotline is staffed by HUD-approved credit counselors who can guide you through possible options.
My intent of this post is to offer help to those that may be in need and to enlighten you of the vultures that are circling round anxiously waiting for another mortgage loan to enter into the default stage.
Stand your ground Pomonans!
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