I Have Warned Home Owners For Years Now See The Video
With the number of people facing tough decisions on how to pay for their homes increasing daily the vultures have smelled the scent of death and begun to circle looking for their prey! The average person is truly clueless how the mortgage business works, the processes and legal issues are complex to the point that even those of us who are in this business do not know all of the nuisances, so there in lies the problem....
Several scams have been around for decades and most draw very little attention from the media because let's face it if it doesn't effect us or someone we know then we do not pat attention to it as a rule. But recently with foreclosures reaching epidemic levels even the man on the street sees the problem either through a family member, co-worker, friend or worse themselves so now the media spotlight is being shown on this problem, The Don't Foreclose Scam!
Now before you start formulating your responses I will state that there are numerous people out there hat are legitimate members of our society working to help people avoid foreclosure through Loss Mitigation, Forbearance, Short Sales, Refit's and zero equity buy outs. For those people of whom I am one this is not you I am writing about. MY foe is the Deed Purchaser.
This old trick is not new it is however more sophisticated than in the past because of the Internet and the financial pain has struck so many homeowners at once. This is one of the main versions of the scam:
A person approaches a homeowner either directly via a phone call or indirectly with a letter offering to stave off the pending foreclosure. The home owner eagerly listens to the scam artist tell them how if the owner will sign over the Deed of Trust to the Investor and begin paying the Investor directly as well as change the mortgage payment address to their office address all will be OK and the can stay in their house. The Investor states to the home owner the investment company will catch up the mortgage and pay the Lender the monthly payments from this point forward. Now this sounds good to the home owner who does not want to lose their home and uproot their family so many agree to sign over the Deed.
Here comes the scam, the Investor takes out a new 2nd or possibly a 3rd mortgage and never makes any payments, continues to pocket the money paid to him by the owner for rent until the bank is ready to foreclose. The Investor signs the deed back over to the bank if they even actually registered the change with the local registrar. The mortgage is still foreclosed on and the "home-owner" is out thousands of dollars in payments never made on their mortgage and also still lose their house. The Investor moves on to the next victim and recreates the same situation...Most crimes are very simple when you have the chance to look at the motives of the criminal form an objective point of view. The problem is the emotional state of the victim clouds their judgment and they believe this is a solution
Follow this link to view the Freddie Mac Video http://www.youtube.com/AvoidFraud.
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