Portland Foreclosure Rescue Scam
Portland foreclosure rescue scams are on the rise. Detective Liz Cruthers of Portland Police Bureau introduced fraud specialist Richard Hagar to the participants of a meeting held in East Portland.
In localities as well as across the nation mortgage fraud is making its presence felt, according to Hagar who is a renowned expert in the field. He explained that the crime is not just about individuals and family units but it is affecting the entire local economy. While introducing Hagar, Cruthers said that real estate agents are indulging in fraud and this is in turn is leading to more foreclosures and fueling the meltdown from the sub-prime. Hagar presented in clear terms the nefarious activities related to real estate deals. It included foreclosure rescue scams. Hagar bluntly said “People who run ‘foreclosure rescue’ operations are the lowest of the low.” They offer false help to those in dire straits and then push them overboard.
Hagar went on to explain the procedure. When a borrower falls behind in mortgage payments he is sniffed out by a so-called helpful friend who suddenly arrives on the scene with a basket full of promises to tide over the foreclosure crisis. Understandably the foreclosure victim is in a traumatized state and does not understand the consequences of being persuaded to sign a “Quit Claim Deed.” The sham rescuer then gives the house owner $5,000 and offers to let the victim continue to stay on as a tenant. He says that at a convenient time in the future the house will be sold back to him. In reality if they miss even a single month’s rent they are thrown out. The situation is grim. The scammer has the title deed.
Hagar cited the instance of a local widow who was mourning for her husband when foreclosure threatened her. She had fallen behind in her payments due to the tragedy. One of the vultures smelt the rot and honed in with rotten promises. He offered refinancing but never did it. He offered to sell the house on her behalf but never did it. He said he would himself see to the stopping of the foreclosure process but did not do it. What he did was to buy the house in the court auction for peanuts – $10,000, because of the “kindness of his heart.” His kind heart made him give the widow $5,000 for moving out. It took him only two months to sell the property for $300,000!
