Foreclosure Rescue Companies Duping Victims
Foreclosure rescue companies are duping victims with teasing signboards promising purchase of house with cash or refinancing the loan with the bonus of a 7 day vacation! They take a fee ranging from $1,000 to $2,500 promising the sky.
The line of approach is the same everywhere with variations from one case to another. The scammers promise to open communication lines with the lenders and arbitrate as regards terms. The most dangerous is the deeding of the house to a third party assuring the borrowers that apparently they will get a breather to get back on their feet. Unfortunately in nine cases out of ten the medicines have proved to be more dangerous than the disease itself. On the one hand foreclosures gallop ahead and on the other following its trail are the vultures – the scammers. It has become a thriving business.
Many states have taken the lead in helping the borrowers to be warned of these dangerous elements. So far 18 states have taken legal measures to prevent foreclosure rescue scams by hemming in the practice with regulations. Six states – Idaho, Maine, Nebraska, Oregon, Virginia as well as Washington enacted the law this year. Florida is set to pass a similar law. The National Conference of State Legislators released this information.
The steps taken will allow the house owners few days time to cancel contracts made with these dubious companies without incurring any penalty. If the house is sold then 80% to 82% of the proceeds has to be given to the original owners. All this will require a written contract. Patricia Lantz (D), Washington State Rep, said that the main purpose is to le let the word circulate that these sort of predators picking the bones of hapless foreclosure victims will not be tolerated. She strongly added, “This is a deterrent to the worst of the worst.”
In 2007 Maryland already had a similar law targeting the scammers but this year in the last session a tougher stand has been taken banning any form of transfer of deed altogether. Washington D.C. and Massachusetts have such strict laws. The Bay State put a full stop permanently on foreclosure rescue scams with an eye to profits through an attorney general’s regulation. Most of the above board foreclosure rescue operations come from non-profit groups and do not normally charge fees. The usual procedure is for house owners seeking them out and not the reverse. On the other hand scammers locate the victims by combing through public records and the like.
