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Mortgage Fraud & Foreclosure Scams: Be Aware, Be Informed and be empowered Pt 3

By MC Griffin Campbell

Real Estate Broker/Owner with HHMC Hollywood Homes by MC

September 09, 2011 03:39 AM

Detect and Combat Mortgage Fraud and Foreclosure Scams.

Be in the Know!

Part III

During these challenging, difficult, and uncertain economic times, the power of Awareness of many unscrupulous people looking to line their pockets at the expense of others’ misfortunes is Key.

Awareness:

This level of Awareness is one of the most effective ways to defend against mortgage fraud and foreclosure scams. It is about knowledge, being informed, and sharing information with others. In the end, this will help detect and combat Mortgage Fraud and Foreclosure scams.

What you need to know:

I. Federal Trade Commission

According to the Federal Trade Commission, if you or someone you know is looking for a loan modification or other help to save a home, avoid any business that:

Offers a guarantee to get you a loan modification or stop the foreclosure process;
Tells you not to contact your lender, lawyer, or a housing counselor;
Requests upfront fees before providing you with any services;
Encourages you to transfer your property deed to title to them;
Accepts payment only by cashier’s check or wire transfer; or
Pressures you to sign papers you haven’t had the chance to read thoroughly or that you don’t understand.

II. Sluggish Housing Market

The sluggish housing market has produced heightened uncertainty which have caused the following actions:

Foreclosure sales made up roughly one third of all home sales this spring.
Dozens of people invaded the California headquarters of One West Bank to protest the bank’s foreclosure practices
Due to the shaky economic, recent falls in the stock market, more home buyers to cancel real estate deals or continue to sit on the sidelines.
Homebuyer cancellations in the past 2 months rose about 10% from a year earlier (Lawrence Yun, Chief Economist of the Realtors group).
Buyers are beginning to think that if they wait, they’re going to get a better deal in a few months.
Homes sales in July fell to the lowest point this year, the NAR said in a report
Application for mortgages to buy homes dropped to a 13 month low in the week August 12.
Mary Holder Agency, Spring Lake, N.J., a real estate company was prompted to file for Chapter 11 bankruptcy. Holder founded the agency in 1992, grew to 7 offices and 160 agents.
Wide-ranging mortgage fraud scheme and foreclosures scams are on the rise.
Attorney General Kamala D. Harris created the California Attorney General’s Mortgage Fraud Strike Force, staffed by Department of Justice attorneys and investigators charged with protecting innocent homeowners and bringing to justice those who defraud them.
Attorney General Kamala Harris has sued multiple entities accused of fraudulently taking millions of dollars from thousands of homeowners who were led to believe they would receive relief on their mortgages.