Home -> Law Blog Directory -> Miscellaneous Blogs -> The Pullins Report

OR PHONE (866) 635-1838 for Bankruptcy Help, (866) 635-6190 for Divorce,
(866) 635-2689 for Personal Injury or (866) 635-9402 for Criminal Defense

Find a Local Lawyer

Bankruptcy (866) 635-1838
Divorce (866) 635-6190
Personal Injury (866) 635-2689
Criminal Defense (866) 635-9402

Miscellaneous

: The Pullins Report

Scott Pullins: Watch Out for Foreclosure Rescue Scams

By The Pullins Group LLC

ADVERTISEMENTS

Local attorneys in my county, including myself, have filed a multitude of lawsuits against a new kind of consumer scam. Masquerading as a property investor or advocate, these quick buck artists use one of the of the following methods to rip you off:

Equity skimming: A "buyer" approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The "buyer" may suggest that you move out quickly and deed the property to him or her. The "buyer" then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose. Remember, signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.

Phantom help: The "rescuer" charges outrageous fees for simple phone calls or paperwork that you could easily do, none of which results in saving the home. This predatory scam gives you a false sense of hope and prevents you from seeking qualified help.

The bailout: In this scam, you are deceived into signing over title with the belief that you will be able to remain in the house as a renter and eventually buy it back over time. The terms of these scams are so burdensome that the buy-back becomes impossible, you lose possession, and the "rescuer" walks off with most or all of the equity.

The bait-and-switch: In this scam, you think you are signing documents to bring the mortgage current, but instead you are actually surrender your ownership. You usually won?t realize that you?ve been scammed until you?re evicted.

Phony counseling agencies: Some groups that claim to be "counseling agencies" may approach you and offer to perform certain services for a fee. These could be services you could do for yourself for free, such as negotiating a new payment plan with your loan servicer, or pursuing a pre-foreclosure sale.

Before deeding your house over to a stranger, or giving them money to rescue your house, seek advice from a consumer protection organization or a local lawyer. Many times the advice will even be free.

Scott A. Pullins, Esq.

Full post as published by The Pullins Report on January 08, 2009 (boomark / email).