foreclosure-scams

Scams may sound bad but they are great for those looking for quick bucks. After all – everything is fair in business. The scams work in a smooth manner. A firm purchases the list of default postings across USA. Thousands have been served notices by their lenders stating that if they do not become current in their due payments the next step would be start of the foreclosure process.

Having obtained this information the scammers send personal letters to the victims underlying an urgent tone saying that they can help to save the situation before it is too late. These letters, offering a shoulder to cry on, are dispatched to all those facing foreclosure – whether rich or poor and whether owners of jumbo or small properties. Invariably calls keep coming. The victims in that traumatized state will clutch at any sympathetic straw.

Having gained the trust of the victims the predators now ask for fees ranging from $1,200 to $1,300 for their promised services. Needless to add – the goods are never delivered and the hard pressed victims find that not only are their pockets lighter but they have lost precious time leaving them with little hope to save their houses. The houses are lost but with increase in more defaults and delinquencies the fraudulent rescue agencies continue to ply their trade getting richer with each deal.

Recently the Federal Trade Commission came to a settlement with a Florida firm – United Home Savers. The company had played games with over 3,100 house owners across USA. The firm denied having done anything illegal but they have downed shutters agreeing to a judgment involving $4.1 million. They have also allowed to have their future business dealing closely scrutinized by federal officials. The judgment however could not be fully executed because they had only in $22,000 in their banks when the assets were frozen by FTC. Ultimately it means their victims will not be compensated for their loss.

The FTC lawyer, Harold Kirtz said, “What really hurts is that a lot of these people not only lost money upfront, but they also fell further behind on their mortgages.” They waited for sometimes months to see things being worked out with firm and the lenders.

United is only one among hundreds and thousands that are operating taking advantage of the housing crisis. So far FTC has dealt with 19 of such cases during the last one year and it seems “more are coming” said FTC’s assistant director for financial practices, Reilly Dolan.

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