Scammers Already Have Bulls-Eye on $25B Foreclosure Settlement

Reblogger Ron Cooks
Real Estate Agent with The Real Estate Marketplace TX# 584631

If there is a way to separate people from their hard earned money someone will devise a scheme to do so. Amy Mullen issues this warning in preparation for the 25 Billion dollar foreclosure settlement. 

Original content by Mullen Real Estate Team


Warning: Scammers are on the prowl, claiming to have your share of the foreclosure settlement — for a fee, of course.

The next phone call you get might be from a crook eager to “help” you get your share of the recent $25 billion foreclosure abuse settlement attorneys general in 49 states negotiated with the big banks.

Reality check: This is a national settlement run by state employees. So the chance that a settlement official is calling you the week after the deal was struck because they’re ready to send you your share of $25 billion is about as likely as the possibility you just won the Nigerian lottery.

The attorneys general of several states warn that fraudsters claiming to be bank employees or settlement officials are calling consumers asking for bank account information, credit card numbers, or other personal information. If you give it to them, they’ll use it to steal your identity or run up fraudulent credit card charges as soon as you hang up the phone.

Don’t fall for that trick or for Internet sites promising to get you your share of the settlement — for a fee. Legit organizations never collect a fee for settlements like this or for helping you avoid foreclosure.

The AGs are saying the settlement will take three years to complete. Just hiring the administrator will take three months. That gives you plenty of time to:

1. See who’s eligible for the settlement.

2. Call or go online to your attorney general’s website to see what your state is doing. (I have a hunch most AGs will put information about a multimillion-dollar payment to their constituents on the front page of their websites.)

3. Check with your lender directly:

  • Citi: 866-272-4749

If you had a loan from one of those five banks, you may hear from your lender at some point during the next three years. The money from the settlement is earmarked for about 1 million households at risk of foreclosure and about 750,000 others who lost their homes to foreclosures.

When the lender calls or writes, you’re not going to have to give them any information about yourself or your loan. Anyone who’s really working on the settlement already has information about you, your home, and your loan. If they don’t, ask for a number where you can call them back and then call your AG or your bank to report them. They’re likely just crooks following the money.

Has a scammer ever tried to get you to give up your credit card number over the phone?

Amy Mullen, Realtor CPA CDPE LMC CHS MBA
RE/MAX Professional Associates

"A real person helping real people with real estate"

JOSH EVANS *JoshEvansHomes 516-655-5000
Village Properties of Mineola, LLC - Mineola, NY
Great blog and great job. Keep up the good work and good luck to you. Thanks.
Mar 16, 2012 09:51 PM
Faith LaRosse
Springer Realty Group - Limerick, PA
Serving Berks, Chester & Montgomery Counties

Isn't it amazing?  If these scammers would concentrate as much effort on doing an honest days work, they'd probably be millionaires!

Mar 16, 2012 10:00 PM
Erv Fleishman
Realty Associates - Boca Raton, FL
Luxury Prop Specialist Realty Associates

Fear not.

Just got off the phone with my Nigerian contact.

He has a great deal for me.

Willing to buy twenty million dollars worth of foreclosed properties.

Money being transferred to our escrow account after I send them application fees which they are not allowed to forward.

It is a great day,.

Mar 16, 2012 10:07 PM
LaNita Cates
REMAX of Joliet - Joliet, IL

This is great information to share Ron! It never fails that the scammers come out when they see any little opportunity to take advantage of people.

Mar 17, 2012 02:41 AM
Rebecca Gaujot, Realtor®
Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Ron, good reblog to help get the word out about these scammers.

Mar 17, 2012 11:52 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Ron this was well worth the re-blog.

Mar 17, 2012 12:26 PM