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  1. #1
    Join Date
    Aug 2009
    Posts
    8

    The Big 3 Mortgage Scams!

    There are already many variations on the three most popular scams, but here are the basics:
    1. "Equity Stripping" or "Bailout." In this scam, the con artist "rescues" the homeowner by helping her get rid of the house. In one way or another, the scammer convinces (or tricks) the homeowner into surrendering the title to the house by promising that she can stay on as a renter and then buy back the house once things have been "fixed."
      In the end, the homeowner can't afford to buy back the house and the rescuers bleed the house of most (or all of) the equity. Result: the homeowner usually loses the house anyway.
    2. Phantom Help. Here, the supposed rescuer charges very high fees for basic phone calls and paperwork that the homeowner could have done himself. Often, the scammer promises to represent the homeowner to his lenders in an effort to "work things out," but never follows through.
      Even worse: the scammer will insist that the homeowner IGNORE notices and phone calls from the lender or its agents, almost guaranteeing that the house will enter foreclosure. By the time the homeowner knows he's been conned, it's usually too late.
    3. Bait and Switch. In this scheme, the scammers masquerade as legitimate housing counselors, armed with mounds of legal documents -- often for new loans that are going to "solve" the homeowner's problems. In reality, the owner signs forged documents that give the scammers ownership of the home.
      To make things worse, the victims still owe money for the mortgage, but no longer have the asset!
      In one instance, a scammer attached documents to a clipboard, and placed Post-It notes next to the various signature lines. "His victims -- some of whom were elderly, or didn't speak English well -- were usually overwhelmed by the documents and also couldn't exactly see what they were signing thanks to the clipboard."
      One of the things the scammer allegedly got them to sign was a "grant deed" that passed their home's title to a third party.
    Last edited by 419legalscam; 08-18-2009 at 02:39 PM.
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