Foreclosure Rescue Scams Run Rampant

By
Mortgage and Lending with Benchmark Mortgage of Louisiana

As foreclosure rates rise, more and more "Foreclosure Savers" are popping up.  They are, of course, targeting unsuspecting homeowners who are having trouble paying their mortgage payments and are scared to call their mortgage servicer to discuss a payment plan.

According to an article on Yahoo! Finance, scammers are discouraging the homeowners from calling their servicers, and are stating that the calls could result in extra fees being tacked on by the lender.  Trust me when I tell you that your current mortgage provider wants to avoid the expense of foreclosure, and would much rather work with you to come up with a solution.

The bottom line (and I know this was posted earlier) is that homeowners should ALWAYS call their servicer FIRST to discuss their options.  Don't fall prey to these scam artists who promise to work with your lender to keep you out of foreclosure - they'll end up taking your money from you, and you'll still wind up losing your home!

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Rainer
39,199
Andrew Scherer
Approved Mortgage Group - Doylestown, PA
Real Estate Representation At It's Finest
When is enough going to be enough for these people!  Homeowners going through a foreclosure process have enough stress to deal with without these "scammers". 
Sep 10, 2007 10:37 AM #1
Rainmaker
808,886
Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY
Realtor

Hi Gareth,

A homeowner should always call their bank to discuss options. The scammers are out and working very hard.

Anthony

Sep 10, 2007 10:38 AM #2
Rainmaker
223,539
Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

Gareth,

It's a shame that some people will do anything to make a buck.  I advertise as an agent to help people facing foreclosure and that's one of the first things I get clients to do.  Either talk to the bank for sign a release so I can.  I can't help someone if I don't know what options the bank has for them.  Unfortunately a lot of people in foreclosure don't want to talk to the bank.  That's where it's our responsibility to educate them and provide them with the best options possible.

Sep 10, 2007 10:47 AM #3
Rainmaker
325,921
Esko Kiuru
Bethesda, MD

Gareth,

Timely advice. Whenever there is a sniff of distress, the low lives come out of the woodwork to prey on those adversely affected. They can be very persistent and unfortunately at times succeed in fooling people. But yes, the most important call when in payment trouble should be to the lender. In today's troubled environment the bank is willing to listen, more so than it normally would be.

 

Sep 10, 2007 12:16 PM #4
Rainer
11,647
Gareth Bourriague
Benchmark Mortgage of Louisiana - Baton Rouge, LA
Benchmark Mortgage
Great comments guys!  Now if we can only get this message across to the consumer...
Sep 11, 2007 04:18 AM #5
Rainer
3,694
Jonathan Dever
Dever Law Firm - West Chester, OH

I could not agree more.  For those who have been paying attention to this disaster, several states are making the ability of companies to engage in this type of business illegal.  In Ohio, The AG has cracked down using the current laws to regulate their activity.

If you are dealing with someone in foreclosure, there are things a good advocate can achieve for them.  In reality, trying to explain the loss mitigation process and the litigation process is overwhelming and improbable. 

The simple truth is that stopping a foreclosure is a misnomer.  Once the complaint has been filed, rarely does a owner have a defense.  That is not to say that there are not things an attorney can do (prevent the plaintiff's right of redemption, mediate a resolution, or use a loss mitigation alternative to reorganize, restructure or refinance the debt).

If you are a Realtor, work with an attorney that understands loss mitigation and the foreclosure process.  A good attorney and a hard working Realtor can do wonders for consumers facing this type of difficulty.  I have seen consumers walk away from their troubles relatively unscathed and the lender sending 1099 to the homeowner rather than go after the redemption amount.

Sep 11, 2007 06:53 AM #6
Rainmaker
291,454
Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing

un real - thanks for the warning and advise!  Too many homeowners will again be victims in these troubled times.  makes me crazy! 

Sep 11, 2007 09:25 AM #7
Rainer
11,647
Gareth Bourriague
Benchmark Mortgage of Louisiana - Baton Rouge, LA
Benchmark Mortgage

Jonathan ~ great points - thanks!

Kate ~ No problem!

Sep 17, 2007 06:42 AM #8
Rainmaker
737,687
Chuck Willman UtahHomes.me
Utah Homes - Alpine, UT
Utah Homes
Yes. Just what a person needs when they get into a barrel. Someone willing to push for a price.
Sep 17, 2007 07:14 AM #9
Rainer
11,647
Gareth Bourriague
Benchmark Mortgage of Louisiana - Baton Rouge, LA
Benchmark Mortgage

Chuck ~ I have not seen a better analogy!

Sep 17, 2007 07:17 AM #10
Rainmaker
81,535
Christopher Ohlsen
Credit Werx, LLC. - Malone, NY
Its unfortunate that there are people out there willing to line their coffers at the expense of scared-to-death borrowers who are facing the prospect of losing their home.
Oct 17, 2007 03:24 PM #11
Rainer
3,446
Maria Concepcion
Creative Family Solutions LP-Consulting Firm - Hamden, CT

Gareth,

Not all the "Foreclosures Savers" are All Scammers that is very very Unfair for you to say. In every field and every Professional unfortunately there are those who use their profession for the wrong. In my company we do work with the Families in their situation. I personally will guide the families and inform them of their rights and what they can do to SAVE there home. Families who in this situation can not afford an Attorney I refer them to the courts, forms, free legal aid, 211,Cmmunity Action Agencies, LossMitigation for work out plans, loan modification etc. I always help them avoid Bankruptcy you see even some Attorney Prey on the families in this situation. Also always tell the families to read all documents never sign anything you do not know of. Be careful of the abundance of letters from Banks, Loan Officers, Brokers, Attorney's and Investors.

So you know what Scammers come in All shapes and sizes. Also the families in this situation literally go through the same grieving process of someone that is grieving for a love one.

 

Oct 19, 2007 04:48 PM #12
Rainer
11,647
Gareth Bourriague
Benchmark Mortgage of Louisiana - Baton Rouge, LA
Benchmark Mortgage

Maria, you obviously misread my post.  The term "Foreclosure Savers" is in quotes - meaning the term is used very loosely.  The Yahoo.com article that I referenced in my post talks about the scammers who are preying on homeowners.  I understand that there are legitimate companies out there, and I hope that yours is one of them.  However, after reading your profile, I see that after all options are exhausted, you ask the homeowner to convey the property to your company, after which I'm sure that you sell the home for a profit, or you wouldn't be in business.  Unless you are returning that profit to the homeowner, you are not providing a service to them. 

Oct 20, 2007 04:52 AM #13
Anonymous
Anonymous

Garth, my company soley runs to help,guide,inform,refer and empower families.  Now if All fails loss mitigatigation,loan modification,refinance,community agencies,donations of funds etc. The worse thing the families can due is in leui of,Bankruptcy (temporary) and full blown foreclosure9which is not recomended but informed). My company also refer families for rent,section 8,ssi (depending on the situation) and will pay for moving expenses and rent.

I personally do not want to inherit there debt as per my profile it states last resort. In 7 years I have been working with Real Estate & Human Services and there has only been three properties that have been conveyed to my company.

Actually Hud Grants and City town Block Grants covers my  overhead and Services to guide and inform (educate) families. Alot of these propeties need alot of TLC so there  for my Company will referr them to Rehab Investors.

Thank you Enjoy your weekend,

Maria

 

Oct 20, 2007 12:10 PM #14
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Rainer
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Gareth Bourriague

Benchmark Mortgage
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