Tuesday, July 3, 2007

Foreclosure "prevention" scams

After reading this article homeowners should be sure not to turn over their deed without speaking with an attorney first.

New Scheme Preys on Desperate Homeowners - New York Times

this article details a foreclosure "help" scam that involves a foreclosure consultant, fake buyer, the transfer of the deed and a refinance and cash out by the fake buyer.

Ms. Johnson met with Home Savers officials and agreed to what she thought was a refinancing of her loan at a lower interest rate with more affordable monthly payments. But the Johnsons unknowingly transferred their deed to a straw buyer working with Home Savers, court documents contend.

That stand-in buyer qualified for a type of mortgage that would let him take cash out as part of the financing. He borrowed $425,000 against the house and pocketed $134,000, which included the Johnsons’ equity built up over the years.

Now the Johnsons are fighting to stay in their house and to recover their equity.

No comments: