FORECLOSURE SCAMS INCREASE IN NUMBER AND CREATIVITY

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EDITOR’S NOTE: Hoak’s article only points out three varieties of scam but there are many more. The long and short of it is that homeowners do need help in gathering information and using it effectively with the assistance of a licensed attorney. But they are not getting the help they need in most instances and they are not getting effective counsel. Here are three categories of scams:

The first is foreclosure rescue. Anyone telling you that the foreclosure will stop if you pay them money is lying to you, pure and simple. The only thing that will stop a foreclosure is a Judge’s order. The automatic stay in bankruptcy is the order of the court. So unless if you have sought and obtained a signed order from a Judge or filed for bankruptcy relief, there is no stopping the foreclosure. Period. Most of these people take your money and run. Some fo them are lawyers who will tell you they are working on it but are doing nothing and won’t return  phone calls once they have your money.

The second uses a short-sale as a vehicle for fraud. There are many varieties of this. Some demand fees up front to get it done, some interpose themselves as middlemen, not submitting the bid they should submit, the list is endless. The worst case scenario is that  you get foreclosed and don’t even know it. You move out thinking the sale went through when in fact nothing happened.

The third one she mentions ought to be the first. It is the false payoff. This hurts everyone. Mostly used in “refis” it  often happens in sales. The writer could have written a full investigative article about this. These “payoffs” send money to someone who has no interest in the deal, no right to receive the money and no authority to release the old mortgage. OR the title or closing agent simply keeps the money from the new deal and doesn’t pay anyone. They get away with it because nobody knows who the creditor is anyway. The homeowner in a refi starts paying the new mortgage source but the old mortgage is still on there going into “default.

SEE FULL ARTICLE ON SCAM IN WALL STREET JOURNAL

By AMY HOAK

Fraudsters will always finds ways to scam lenders and homeowners. And in recent years, they’ve shifted their tactics to profit from the market’s downturn.

Today, there’s less identity fraud and misrepresentation of income or employment to obtain a mortgage, mainly because of stricter validation criteria, says David Johnson, vice president of fraud and consortium solutions for CoreLogic, a provider of financial, property and consumer information. But other types of fraud are replacing those scams.

7 Responses

  1. Not sure if the comments under this article heading are even relevant to this article, as they seem to be referring to issues unrelated??

    At any rate, I wanted to share a little bit of GOOD news. When I originally started the process of selling my home this past February, I did my due diligence by hiring a title company to open title and asking them to forward me the entire chain of title from the day I bought my home to the end lender that would be “paid off” at closing.

    I then went down to the county clerks office and ordered a certified copy of EVERYTHING EVER recorded on my property and I asked the Deputy Clerk to take a screen shot and sign the report stating that NO other recordings on my address had taken place during the time I have owned it.

    When I received the doc’s from the title company, the proceeds were to be forwarded to Deutsche National Bank Trust (an entity I had no knowledge of or contact with) and the only thing recorded on my property (in spite of the fact that the address for my payments had changed at least 5 times) was an Assignment in 2007 signed by Bryan Bly as Attorney in Fact for Ameriquest (that went bankrupt just prior to then) and ALSO as VP for Citi Residential Lending.

    Needless to say, having been a mortgage broker for 6 years and a Real Estate Broker for the past 20 years, I was more than a little bit alarmed. None of this made any sense to me, so I began doing even more due diligence. Which has led me on this journey that has lasted for almost ten months now, and that has led me to find the entire, unadulterated and highly damning FULL deposition of the infamous Bryan Bly admitting that he fraudulently signed off on bogus Assignments and that they were fraudulently notarized. I also checked for the P.O.A. that was listed on the assignment granting Mr. Bly his authorities to sign, listed as Book, Page and Doc # did not even exist. In fact, our county clerks office ceased using Book & Page over a decade ago.

    So I hired a decent real estate attorney, had him order all the aforementioned documents CERTIFIED, and sent QWR and demand letters via certifed mail to EVERY entity that had ever contacted me for payments.

    We then stopped making payments when they refused to answer our multiple requests, and filed for a Temporary Restraining Order whilst submitting all our evidence of fraud at the same time we filed the TRO..

    When our court date arrived, they did not even show up. They have finally “answered” the court, but none of our discovery requests. However, they have now ceased ALL contact with me. I have not so much as received a notification, or a bill or a phone call since they were served.

    We are demanding a jury trial ~ but my attorney feels that with all the evidence we have stacking up against them, they probably will not even show up. And if they do not, we are filing for Quiet Title within 30 days of that. And then, we are suing for damages.

    All I can say is ~ don’t stop digging ~ or fighting ~ or having faith.

    I am confident that we will have Quiet Title on my home within the next 12 – 18 months. I just pray that by then, it will still be worth something.

  2. Corelogic should keep the mouth shut , as long the provide faulty
    appraisal on the Internet. My AVM was 51 % !! lower than the
    original appraisal what was given to CHASE . We did not even had
    a bathroom in the house and less square feet also.
    I hope the banks recognice ,what data CORELOGIC them provide.

  3. Yes ENRAGED I remember the story of the Mustangs.

  4. THE THIRD ONE —– GOES DEEP

    THE THIRD RAIL —– The phrase third rail is a metaphor in politics to denote an idea or topic that is so “charged” and “untouchable” that any politician or public official who dares to broach the subject would invariably suffer politically.

  5. @enraged. I pray for peace.
    But it does not look good.

    NEVER AGAIN

  6. @The A Man,

    Remember my story with the mustangs?
    Banks are going to inflict a maximum of damages nationwide before being shut down. And since you can’t put new wine in an old skin, we are looking at major reforms in the months to come. I’d like to be peaceful but it doesn’t look like banks will go peacefully…

    The only way out of those scams is a nationwide unlimited moratorium, followed by in-depth investigations, criminal pursuits when appropriate and complete revamping of our financial system.

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