Getting Trapped in Foreclosure Scam
The rising foreclosure rates in this country are the most heated topics of discussion everywhere. In fact, many homeowners in the United States are currently in distress. Till the current period of 2007, the nation has recorded a total of 925986 foreclosure filings, which is 56% higher than the figures recorded for the year 2006.
Several homeowners in the country are facing foreclosures and are very likely to lose their homes as well as wreck their credit scores.
These homeowners are looking for some source of rescue and, taking advantage of this situation, several companies have come up with a large variety of options for such homeowners. However, in reality, many of these companies are frauds and are taking advantage of these hopeless homeowners.
Reports by our investigative correspondent reveal that many homeowners who got trapped in such foreclosure scams eventually ended up losing everything. A story by a 70-year-old grandmother from Atlanta, Annie Stephens, reveals her plight in the story below:
She says that she tried seeking help from one of these so-called foreclosure rescue companies, who promised to provide her with refinance options. However, in reality, they took away more than ten thousand dollars of her equity. She has almost lost everything and doesn’t know what to do.
One could gather from this, and other similar stories, is that trapping these helpless people is a well-formulated plan by such foreclosure rescue companies, who claim to provide rescue from a foreclosure crisis.
Actually these agencies attract people facing foreclosure through their ads, which promise to provide foreclosure help to such people. They convince homeowners to transfer their deeds to a third party investor, which can be quite risky and dangerous. These companies make borrowers do so by promising them that they will eventually give back their deeds.
However, in reality, the company cheats them for a large amount of money in equity. These fraudulent companies always end up putting a homeowner’s credit in a much worse state.
As the foreclosure rates in the country are rising, the extents of mortgage fraud are also rising exorbitantly. According to Elizabeth Renault of the National Consumer Law Center, foreclosure rescue is one of the most shocking and disgraceful scams, currently prevailing in the county.
Several homeowners are getting trapped in the tall claims made by such fraudulent companies. One such company in Maryland, by the name of Metropolitan Money Store, is reported to have cheated more than 400 homeowners and took away a large amount of equity from the cheated victims.
