Foreclosure Scams Work Both Ways

It’s true that most foreclosures are scams designed to obtain revenue instead of paying off a debt. But it is also true that there are many who pray upon the desperation of distressed homeowners who frankly are so emotionally overwrought that they are not thinking straight.

So yes, anyone who guarantees you a result is neither an attorney nor anyone who can or will help you. They are interested in your money and you would be best off not hiring them. they are providing services that seek to justify the money taken from you rather than actually seeking to accomplish something of value to you.

The thing you need to know is that Wall Street banks can influence almost anything. So they have successfully targeted many people providing assistance in foreclosures — particularly if they have been successful in court obtaining judgments or forcing the banks into settlements.

By focusing on the scams against homeowners by people pretending to help, this distraction keeps the FTC and Little FTC state agencies away from the biggest scam of all — false, fraudulent foreclosures that do not pay anyone who owns the debt.

As for lawyers and forensic investigators whose work I have endorsed and highlighted, don’t throw out the baby with the bathwater. Some of them might have things in the public record that don’t look good. That does not diminish the value of their analysis and competence to provide you with assistance and advocacy you require.

The key things to be careful about in what the FTC calls “Foreclosure Rescue Schemes” are the following, taken from a bulletin from the Federal trade Commission.

The scam artists use simple – but potentially deceptive – messages, like:

“Stop foreclosure now!”

“Get a loan modification!”

“Over 90% of our customers get results.”

“We have special relationships with banks that can speed up the approval process.”

“100% Money Back Guarantee.”

“Keep Your Home. We know your home is scheduled to be sold. No Problem!”

see https://www.consumer.ftc.gov/articles/0100-mortgage-relief-scams

The FTC bulletin unfortunately blankets virtually everyone providing assistance to homeowners and should not be taken as the ultimate truth. So while true in certain respects, the bulletin chills access to those who could provide real help.

That is exactly what the Wall Street banks want and need, because they have no right to get the proceeds of foreclosures when they are not even the party claiming foreclosure and they have no right, title or interest to the debt, note or mortgage.

Lawyers are mostly exempt although there were attempts to include them under the MARS rule. But they too might be soliciting for fees without actually pursuing a goal of something satisfactory to the homeowner.

So the moral of the story is take a deep breath and calm down. Research the person with whom you are thinking of hiring.

 

One Response

  1. Amen! Some are so unscrupulous and simply seeking payment-perpetual payment that they don’t deserve and aren’t working in the homeowners behalf at all. They rely on what the banks say,their attorneys, without question. That is all wrong. Who is actually doing the real work to expose these ‘lenders’ for what they do, with success?

    There are really good and honest lawyers out there, but where are they and how does one find and afford them? The main thing is finding them before it’s too late.

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