Foreclosure Rescue Scams

Posted on 08/12/2006 at 05:44 pm by Viewed 5,693 times

Bankruptcy Article #22

James Molleur
Aug 12, 2006

Homeowners with both fixed and adjustable rate mortgages are finding themselves in financial distress. Foreclosure rescue scammers are agressively preying upon these homeowners, causing them to lose their built up equity and their home. The scammers lead the homeowners to believe they are obtaining a refinancing or another loan, but the documents signed by the homeowner actually transfer the property to the scammer. Another technique scammers use is to directly encourage the homeowner to transfer the home to the "rescuer" with the promise to let the homeowner buy it back later. Frequently the "buy back" terms are too expensive, resulting in the scammer or "rescuer" evicting the homeowner. The scammer or "rescuer" then sells the property for a profit.

I have had an experience with a homeowner who was a victim of such a scheme, but was so thoroughly convinced he could later repurchase the home from the "rescuer" that the homeowner turned down an opportunity to save his home in a Chapter 13. Even when I carefully explained the repurchase terms to the homeowner, demonstrating that it was practically impossible for him to repurchase, he still chose the "rescue" scheme, because he had so completely bought into the story given by the scammer and didn't think they would take advantage of him.

If you are experiencing financial problems and you are unable to keep current with mortgage payments, look first at Chapter 13 to save your home. Chapter 13 provides a well recognized and respected technique to cure mortgage arrearages, and solves your problems under the protection of the Bankruptcy Court. Your home is your most valuable financial asset - don't let scammers take it away from you!

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