Getting Trapped in Foreclosure Scam
The rising foreclosure rate in the country is the most heated topic of discussion everywhere. Several homeowners in the county are 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 there by the chances of losing their home and credit has increased significantly.
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 are frauds, and helpless people are getting trapped in these foreclosure scams.
Reports by our investigative correspondent reveals the plight for several homeowners who got trapped in such foreclosure scams and eventually ended up loosing everything. A story by a 70-year-old grandmother from Atlanta, Annie Stephens, reveals her plight.
She says that she seeked help from such foreclosure rescue company who promised to provide her with refinance. However, in reality they took away more than ten thousand dollars in equity. She has almost lost everything and don’t know what to do.
What one could gather from this and several other stories of helpless people is that, trapping these helpless people is a well-formulated plan by such foreclosure rescue companies, who claim to provide foreclosure rescue and thus help people save their property.
Actually these agencies attract people facing foreclosure through their ads, which promises to provide foreclosure help to such people. They convince homeowners to transfer their deed to a third party investor. These companies make borrowers do so by promising them that they will be getting back their deed.
However, in reality the company cheats them for a large amount of money in equity. These fraudulent companies also make the homeowner’s credit worse.
As the foreclosure rates in the country are rising, the extents of mortgage fraud are also rising exorbitantly. According to Elizabeth Renuart 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 large amount of equity thus making the victim homeowners feel like a bottomless pit.
