I have practiced law for over 25 years and over the years I have
seen many unfortunate people lose their homes to mortgage
scams. I am pleased that due to my intervention I have
stopped con-artists from stealing homes from clients. This
has happened when the client had the good sense to come to my
office, often with the thief in tow. I have faced down these
con-artists in my office. I can see why people fall prey to
these thieves. Even when I confront them they lie to my face
and become indignant!
The homeowner that falls victim to these con-artists, thieves
and scammers are usually behind in their mortgage and or
elderly. The con-artist may be a man or woman, they may be
White, Black, Hispanic or of any other ethnic background.
Usually the con-artist will select someone of their own ethic
background as their victim. Almost always, the con-artist is
smooth and fast talker. The con-artist will have you think
that they are being your best friend as they steal your home from
under you. Also, beware, the scammer can be introduced by a
friend or family member. The sammer can even be a friend or
family member!
There are two different types of mortgage scams:
1. The Equity Strip: In this scam the thief will have you deed
over your home to him or her. The thief will instruct you to
pay your mortgage payments to him or her. The con-artist will
promise that once you have caught up on your mortgage payments that
he or she will then transfer your home back to you. In
reality, the con-artist will sell your home to someone else and
keep the profits. In the end, you will be out of your money
and your home.
2. The Phantom Assistance Program: In this scam, although
the con-artist is not after your home, only your money, you often
end up also losing your home. The con-artist will tell you
not to speak to your lender because he or she will negotiate with
the lender concerning your late mortgage payments. The
con-artist will charge you a "fee" for "services" and may tell you
to direct your mortgage payments to him or her as well. In
the end, the con-artist will disappear with your money and provide
no services. By the time you have realized what has happened
you may be so far behind your mortgage payments that you may lose
your home to foreclosure.
There are many variations to the above mentioned mortgage
scams. The best way not to fall victim to any scam is to
follow the following rules:
1. Never sign any documents, including, but not limited
to, contract or deed, without the advice of a trusted attorney of
YOUR OWN INDEPENDENT selection.
2. Don't listen to any one that tells you not to talk to
your mortgage lender.
3. Look out for fake bank or government
websites.
4. If you find that you are behind in your mortgage
payments speak with your lender.
5. Be extremely wary of anyone that ask you to pay them
for dealing with your mortgage lender.
If you follow the 5 rules stated above it will greatly help you
from becoming the victim of mortgage fraud.