Foreclosure Scams "Spreading like Wildfire"
Scam artists preying on families about to lose their homes.
And the number of vulnerable homeowners keeps rising.
In this year's first quarter, the foreclosure rate surged 35 percent, according to RealtyTrac Inc.
No surprise, then, that crooks are all too ready to try to take advantage, says CBS News Business and Economics Correspondent Rebecca Jarvis.
On average, she says, consumers lose $3,000 if they're victimized by such fraud, but you could lose your entire home. The state of Nevada alone has received complaints against 167 companies supposedly involved in foreclosure "relief" efforts, sometimes getting hundreds of complaints about a particular company.
TYPES OF SCAMS
Phantom Help: The "rescuer" charges outrageous fees for light-duty phone calls or paperwork that the homeowner could easily handle on his or her own, none of which results in saving the home. This predatory scam gives homeowners a false sense of hope and prevents them from seeking qualified help.
Bailout - or "Rent-to-Own": The homeowner is deceived into signing over the deed, in the belief he or she will be able to stay in the house as a renter and eventually buy it back over time. The terms of these scams are so onerous that the buy-back may be impossible, the homeowner loses possession and the "rescuer" walks off with most or all of the equity.
Bait and Switch: In this scam, the homeowner thinks he or she is signing documents to bring the mortgage current, but instead actually surrender ownership. Homeowners usually don't even know they've been scammed until they're evicted.
RED FLAGS TO BE AWARE OF
If the "rescuer" does any of the following, the "rescuer" could really be a thief at work:
- Calls itself "mortgage consultants"
- Advertises with flyers or solicits door-to-door
- Asks for upfront payment
- Tells you to make payments to them
- Tells You to transfer your deed to them
IF YOU THINK YOU'VE BEEN HAD
- Fill out a police report
- Contact your state's attorney general's office
- Notify your lender
Copyright 2010 CBS. All rights reserved. And the number of vulnerable homeowners keeps rising.
In this year's first quarter, the foreclosure rate surged 35 percent, according to RealtyTrac Inc.
No surprise, then, that crooks are all too ready to try to take advantage, says CBS News Business and Economics Correspondent Rebecca Jarvis.
On average, she says, consumers lose $3,000 if they're victimized by such fraud, but you could lose your entire home. The state of Nevada alone has received complaints against 167 companies supposedly involved in foreclosure "relief" efforts, sometimes getting hundreds of complaints about a particular company.
TYPES OF SCAMS
Phantom Help: The "rescuer" charges outrageous fees for light-duty phone calls or paperwork that the homeowner could easily handle on his or her own, none of which results in saving the home. This predatory scam gives homeowners a false sense of hope and prevents them from seeking qualified help.
Bailout - or "Rent-to-Own": The homeowner is deceived into signing over the deed, in the belief he or she will be able to stay in the house as a renter and eventually buy it back over time. The terms of these scams are so onerous that the buy-back may be impossible, the homeowner loses possession and the "rescuer" walks off with most or all of the equity.
Bait and Switch: In this scam, the homeowner thinks he or she is signing documents to bring the mortgage current, but instead actually surrender ownership. Homeowners usually don't even know they've been scammed until they're evicted.
RED FLAGS TO BE AWARE OF
If the "rescuer" does any of the following, the "rescuer" could really be a thief at work:
- Calls itself "mortgage consultants"
- Advertises with flyers or solicits door-to-door
- Asks for upfront payment
- Tells you to make payments to them
- Tells You to transfer your deed to them
IF YOU THINK YOU'VE BEEN HAD
- Fill out a police report
- Contact your state's attorney general's office
- Notify your lender
In New Pew Survey, 80 Percent Say They Don't Trust Washington; Nearly Half See Negative Impact in Daily Lives
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Translation: 4 out of 5 Americans dont trust Obama or his followers.