Homeowners facing foreclosure have one more thing to worry about: Getting “help” from scam artists.
“This is a relatively new trend affecting homeowners struggling with their mortgages,” said Jeff Telling, central Illinois regional manager for Chicago-based Family Credit Management.
“Many for-profit companies are contacting delinquent consumers. Our Rockford office even reported hearing from consumers who have had these companies knocking on the front door of consumers who were in preforeclosure,” Telling said.
“We’re hearing about scams all over the country, from California to Kansas to Florida. The sad thing is that people are paying money for assistance that, in most cases, is available at no cost to the consumer. Consumers need to know there is help available and they should never pay for this type of assistance,” Telling said.
So far, Illinois Attorney General Lisa Madigan filed lawsuits against 22 so-called mortgage “rescue” companies.
“Consumers need to resist offers of a rescue. These scam artists prey on desperate homeowners who are struggling to save their homes,” she said.
One type of rescue fraud scheme involves scam artists who convince home owners to sign over the title of their home under the promise that the home will be signed back over to the original owner at a later date. “This is especially devastating to homeowners who often have their entire life savings wrapped up in their home’s equity,” Madigan said.
The predominant foreclosure “rescue” scams generally come in three varieties, according to the San Diego-based Housing Opportunities Collaborative:
Title transfer: The most dangerous scheme is the “bailout” that never quite works. This scenario includes various schemes in which the homeowner surrenders title to the house in the belief that within the deal, they’ll be able to remain in the home as a renter, and eventually buy it back. Another scam convinces the homeowner to transfer title to a “federal land grant” with the false promise that this prevents the lender from foreclosing.
Bait and switch: In the bait-and-switch scheme, the homeowner fails to realize they are surrendering ownership of the house in exchange for a “rescue.” Many homeowners later insist that they believed they were only signing documents for a new loan to make the mortgage current.
Phantom help: The third scheme could be called “phantom help” because the “rescuer” charges outrageous fees, either for light-duty phone calls and paperwork the homeowner could have easily done, or on a promise of more robust representation that never happens.
Many scammers use “affinity marketing” — that is, using Spanish-speakers to market to Spanish-speaking consumers, senior citizens to senior citizens, and other matches, according to LOLO, a Berkeley, Calif. legal aid group.
LOLO offers the following tips for those who believe they may be losing their home:
* Stay in touch with your mortgage lender. Contrary to what a foreclosure scammer will tell you, you should contact your lender the minute you have trouble paying.
* Get full information about the foreclosure process. Your best offense in saving your home, and your best defense in preventing scams, is to learn about and understand the foreclosure process.
* Never make a verbal agreement. Always get everything in writing.
* Seek help from a legitimate foreclosure counseling agency. See HUD’s Web site at www.nfcc.org for HUD-approved counseling agencies.
Steve Tarter can be reached at 309-686-3260 or starter@pjstar.com.
Landlord Safety
FEBRUARY LCPIA MEETING TOPIC: LANDLORD SAFETY
WHERE:
American Legion Gurnee Post #771
Located 1 block east of Rt. 21 at Grand Avenue in Gurnee.
WHEN:
February 10, 2009
6:30 p.m. (Registration 6:00 to 6:30)
Aug 24, 2008 | CHICAGO | The 77-year-old South Side landlord who was set on fire last week, allegedly by a 28-year-old former tenant, has died.
Harlan Hayes was pronounced dead at 12:15 a.m. Sunday, according to a spokesman for the Cook County Medical Examiner’s office.
Police responding to a fire about 2 a.m. Tuesday found Hayes screaming for help on a sidewalk in the 6300 block of South Ellis Avenue.
Hayes told police he had answered an early knock at his door at 6319 S. Ellis Ave. when a former tenant drenched him with gasoline and lit him on fire.
Hayes was initially taken to University of Chicago Hospitals in critical condition with third degree burns to more than 90 percent of his body. Hayes was doused with an accelerant and lit on fire inside his building, police said.
A tenant who called 911 after seeing smoke coming from Hayes’ apartment said Hayes had asked the alleged arsonist to move because of illegal activities in the apartment. He would not specify the type of illegal activities.
The tenant said he thought he heard noises in the former tenant’s apartment just before Tuesday’s incident.
The former tenant, Donald Hardy, 28, of the 800 block of East 65th Street, was charged Friday afternoon with attempted first-degree murder.
Hardy turned himself into Grand Crossing District police on Thursday after realizing he had been identified as a person of interest, police said.
A judge denied bond for Hardy during a Saturday morning hearing.
(Source: Chicago Sun-Times)
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Like it or not, landlords engage in high-risk activity all the time. From working alone in vacant units to meeting strangers at all hours, it’s a wonder we aren’t victims of violence more often.
Join us February 10 and learn how to take precautions to avoid becoming a victim.
LCPIA member Mel Metts has adapted a presentation from the Arlington Heights Police Department that was created for Realtors.
You will learn how to protect yourself when showing vacancies, minimize risk in your daily activities, and reduce chances of identity theft on the Internet.
Filed under: commentary, education | Tagged: landlord safety, real estate, rent, rental | 3 Comments »