Mortgage scams have totally gotten out of control in this country and I don’t believe we’re over this yet, and there is a new wave coming.
These scams are actually growing as quickly as identity theft and are taken advantage of by any criminal.
It is another way to give them a way to make money and make you their victim.
There are so many variations of mortgage scams it is hard to keep up with it.
The modification plan was supposed to be a salvation for many people and turned out to be a joke.
A family member of mine, I’ll call her Ellen, put in for a loan modification when the President first made the statement that people could put in for this.
It took Months for Ellen to get any answer concerning this.
Ellen kept calling, and calling, and would be told they were working on it, but no one seemed to be able to answer specific questions or give her definite answers.
In other words, the people that were supposed to help you Had No Clue what they were doing.
This program was so big and had so many rules, everyone was confused.
Eighteen Months Later, (yes, you read that correctly), Ellen finally called and was told that they could only modify here loan for 3 months.
Three Months? They call this help? That's not my definition of the word.
I think all us “regular” people had a much different perspective about how this program was supposed to work, considering all the ads and talks on TV that aired.
Everyone was under the impression that this program would stop foreclosures by reducing your mortgage payments, not just for a couple of months, but the total loan would be addressed and reduced.
Ellen couldn’t believe that after all she had gone through, that this was all the bank was going to do for her.
This absolutely would Not solve the problem.
Ellen finally found a woman at her states Attorney General’s office that had the final decision above what the bank came up with.
Ellen was able to get her whole mortgage modified at a rate which wasn’t as low as she hoped, but one that still helped.
It’s a sad state of affairs when you have to go to the extent that Ellen did to get the help the bank was supposed to give to begin with.
Don’t wait till the last minute when things are at their worst and you have received numerous notices from your lender.
At this point, the lender is not as apt to want to help.
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If you are approached by someone claiming to be associated with foreclosures make sure you check out the company the person claims to work for to make sure you are dealing with someone that is reputable.
Being approached should also be a red flag that this is probably one of the many mortgage scams.
Mortgage scams come in many different forms such as home equity credit lines that are opened and drained by identity theft.
The FBI states the cases of fraud have increased dramatically in the last few years.
The FBI handled more that 1,200 mortgage fraud cases in 2007... a 176% percent increase from 2003, and a 47% percent increase from 2006.
Anyone that tries to persuade you to sign the title to your home over to them should be a Major Red Flag.
Don’t do it! Talk to your attorney first.
In reality, the documents you just signed surrender the title of your home to the scammer for what they term a “rescue” loan.
The catch? You have to first pay him a fee.
You do not have to pay to benefit from these government programs.
To prevent foreclosure, your lender will be able to inform you if you qualify for any government program.
You can also look at the recent assessments of taxes of neighborhood homes.
Protect yourself and become knowledgeable concerning what you are looking into.
Sadly, it’s a few bad apples that have given the overall profession a bad name.
Mortgage scams have truly increased in volume in the last few years and are filled with traps. Become educated and knowledgeable to protect yourself from this scam and identity theft.