Millions at risk of foreclosure fraud
Posted: Monday, September 22 2008 at 05:00 am CT by Bob Sullivan
Angela Carter outside the Chicago home she may lose because, she says, she fell for a foreclosure rescue scam. (Chris Ocken for MSNBC.com)
Angela Carter's family has lived for 46 years in the same small two-story home in Chicago, perhaps a 15-minute ride from Barack Obama's adopted Hyde Park neighborhood. But today a piece of paper says someone else owns the property, and a judge will soon decide if Carter and her mom get to stay in her home.
The reason Carter, 55, is facing eviction, she says, is that she fell for a high-stakes scam that’s sweeping the nation, preying on the 1 in 11 consumers who are either behind on their mortgage payments or already in foreclosure.
Interviews with legal aid offices and law enforcement officials around the nation indicate the problem of so-called “foreclosure rescue scams” has spread like wildfire, neatly paralleling the downturn in the mortgage market.
The problem is so bad that in Portland, Ore., local police now automatically send a letter to homeowners who enter foreclosure warning them that they will be inundated with shady offers of help. In one case in Maryland, a single firm is accused of bilking hundreds of residents out of their homes and stealing $60 million in equity. Similar large-scale scams are happening elsewhere; in fact, foreclosure fraud is so common that it's exacerbating the nationwide housing slump, adding to the ranks of distressed homes that pull down the housing market in general, according to some experts.
There are many variations on the scams, but they all boil down to two types. There’s a simple fee-based racket, in which the criminal offers to help the homeowner stave off foreclosure, collects an up-front fee and then disappears. But the more lucrative scheme involves seducing homeowners into complicated transactions that allow the middlemen to steal equity in the house or walk away from the closing table after netting thousands in phony payouts.
How serious is the problem? The proliferation of roadside signs with entreaties like “We buy houses” and late night infomercials promising easy real estate riches offers a clue.
"There is a booming business in selling information on foreclosures,” said Melissa Huelsman, a Seattle-based lawyer who represents victims in predatory lending cases. “There are whole companies that do that and little else. That gives you an idea how big this is.”
Carter -- who might lose her Chicago home -- said she was hit by the worst kind of rescue scam, with her suitor managing to drain nearly $100,000 in equity from her home before she knew what had happened.
She said that she fell behind in her mortgage four years ago after losing her job as a clerk for a company that publishes local "yellow pages." As the bank closed in, a company named Second Chance Program offered to help Carter save her home.
Here is Carter’s version of events: After signing a flurry of paperwork, she signed title of the house over to Second Chance, selling her house for $140,000 with the understanding that she would pay the firm rent and could repurchase the house a year later for $180,000. But almost immediately after signing the deal, Carter said, Second Chance took out a second loan on the property based on her untapped equity and pocketed close to $100,000 -- a common scheme called "equity skimming."
“I had no idea what the building was worth,” she said. “And I had no idea they were buying my house. All along I thought they were giving me a loan.”
Two years later, Second Chance sent Carter an eviction notice. With the help of Chicago's nonprofit Home Ownership Preservation Project, she was able to temporarily block the eviction. Now, the two parties are fighting in state court about who holds the rights to the home. Earlier this month, Carter spent a week in court pleading her case. Now she faces a long wait to find out if she'll get to keep her house and what will happen to the $100,000 in equity her family earned from living there for nearly five decades.
"I have no idea how it's going to turn out," she said. "It's like living with a question mark over your head.”
Carter faces a formidable legal opponent. Second Chance is owned by J.T. Foxx, a self-proclaimed real estate investment guru whose motto is "Get Rich or Die Broke." Foxx hosted a Chicago radio talk show every weekend where he offered investment advice.
Foxx did not reply to messages left with his attorney, Bill Sullivan. An operator who answered the phone at Second Chance’s offices said, “They (Second Chance) aren’t with us anymore.” E-mails sent to the address at Foxx’s Web site were undeliverable.
Dan Lindsey, who represents Carter, said the rapid rise and fall of the housing market created an ideal situation for con artists.
“These people are the perfect target for equity strippers,” he said. “It was a niche market that exploded. It seemed everybody was getting into it. Entire companies were formed to do it.”
SOURCE: FBI
Illinois, like many states around the country, has passed new legislation making some foreclosure scam tactics illegal. The state’s law requires that rescue brokers pay homeowners at least 82 percent of the market value of the home in any transaction, for example.
But such rules came too late to help Carter. And new variations on the scam designed specifically to evade new laws and regulations continue to pop up.
"These people are all very smart in a nasty, evil kind of way," said Huelsman, the Seattle attorney. "People who commit white collar crimes just keep at it and just find a different way."
She said she had one client who was a victim of equity skimming who went from owing $90,000 on a mortgage to owing $480,000 after a series of fraudulent loans.
Felons as mortgage brokers
When the housing market began to teeter on the edge of a meltdown, state and federal agencies were unprepared to prevent an avalanche of scams. In Florida, which some have called the mortgage fraud capital of the country, a recent Miami Herald investigation found that 10,000 convicted felons had been granted mortgage broker licenses from 2001-2007. More than 4,000 were approved even though they had committed crimes that the Office of Financial Regulation was specifically instructed to screen out, including white collar fraud, the newspaper reported.
Earlier this year, federal officials announced Operation Malicious Mortgage -- 400 indictments against individuals and companies allegedly involved mortgage fraud that led to nearly $1 billion in theft. But authorities say they were only able to target the worst fraud artists.
"We can’t investigate all the cases,” said Portland-based FBI agent Joe Boyer. “We have to prioritize.”
Many homeowners who are victimized by a scam don’t even report the crime to police, and those that do might find that officers won’t take a report, said Portland police Detective Liz Cruthers.
"If they do call police, I can guarantee you police will treat it as a civil problem," said Cruthers, who runs seminars for Oregon police so they will recognize the signs of mortgage fraud. “But our position is it's easier to prevent these cases then to investigate them.”
Mortgage fraud is a general term. It covers the relatively small fibs of home buyers who stretch the truth on income statements to squeeze into a new home. And it covers massive crimes involving con men who buy hundreds of homes using falsified documents.
But many experts say there is an important distinction between “fraud for housing” and “fraud for profit.”
Foreclosure rescue fraud falls in the latter category. While no hard data is available on the prevalence of each type, Arthur Prieston – whose firm, The Prieston Group, sells mortgage fraud insurance -- said he believes that at least half all mortgage fraud involves outright con men. And with the market for easy credit and house flipping all but dried up, mortgage con artists have increasingly trained their eyes on desperate homeowners through foreclosure rescue fraud, he said.
Suckers lists
Two years ago, foreclosure rescue fraud aimed at skimming equity was child’s play. There were many homeowners around the country who could not pay their mortgage but had plenty of equity in their homes. A simple “suckers list” of at-risk owners with high equity could be created simply by cross-referencing public “Notice of Default” lists and local property tax rolls.
That's how former stripper Joy Jenise Jackson and her Washington, D.C. area, firm Metropolitan Money Store managed to target only homeowners in foreclosure with more than $100,000 in equity, prosecutors say. Before her operation was shut down, Jackson had skimmed $35 million in equity from hundreds of homes, according to an indictment unsealed in February 2008.
In another variation of the scam, con artists talk victims into transferring title of their home, then recruit investors know as “straw buyers” to take legal ownership of the property. The straw buyers pay off the old mortgage, take out loans against the full equity of the homes and pocket the difference. The straw buyers’ role is simply to provide a viable credit score and credit profile so a bank will approve the loan.
VIDEO: NBC's Lisa Myers investigates the Metropolitan Money Store.
The criminals make money from both ends of the deal. Straw buyers have no intention of living in the building, so the con men allow the victims to stay in the building and pay rent. Victims are often told they have an option to buy back the house later, as Carter said she was. In some cases, they are told the money they are paying is being used to help pay down their debt or build up their credit.
"Most people don’t even realize they don’t own their home,” said attorney Scott Boroson, who is representing some victims in the Metropolitan Money Store case. “They would come to me when they get notice from the landlord tenant court.” In some cases, multiple loans have been taken out against the victims’ homes, making a clean unraveling of the crime – and ultimately restoring the title to the homeowner -- very difficult. Even after learning of the scam, many banks are unsympathetic, Boroson said.
“The bank says we don't know anything about this, just get your people out of the house,” he said.
Follow the advice – commit a felony
Rich Hagar is a former home appraiser based in Seattle who now runs seminars for law enforcement officials and real estate professionals on detecting fraud. He describes the mortgage fraud problem as "monstrous," noting that bank “Suspicious Activity Reports” for mortgage fraud have jumped nearly 700 percent in the last five years, with 48,000 filed in the first nine months of this year alone. But Hagar said he believes those figures only represent 10 to 15 percent of the total fraud cases – suggesting nearly 1 million more fraudulent mortgages have been closed in the first nine months of this year. One reason he believes that, he said, is that fraudulent strategies remain popular with get-rich-quick real estate investment strategy teachers.
“There’s those late-night infomercials, if follow them, you are committing a felony,” he said. “In most classes they tell investors to get to the homeowner the moment they get to foreclosure and tell them they can save them.” Many foreclosure rescue companies improperly practice law without a license by giving legal advice or negotiating with banks on behalf of consumers, while others violate the Credit Repair Organizations Act by offering bad advice on credit scores or not providing the proper disclosures.
In Florida, authorities are unraveling a set of alleged mortgage scams operated by a firm named the Safe Harbor Foundation. The company was operated by Peter Porcelli, the flashy former owner of a pro softball team called the Tampa Bay Smokers. A direct marketing millionaire, Porcelli pleaded guilty in 2007 to a credit card scheme that defrauded 165,000 victims. In 2004, the Federal Trade Commission prevailed in a lawsuit accusing him of misleading travel advertisements, and he was ordered to repay $12.5 million to consumers. But at the same time, Porcelli was offering mortgage rescue help to Floridians like Kathie Visceglie.
"A judge gave my home to him,” Visceglie, of Hudxon, Flor., said. "I just want to get my title back so I can sell the house and get out of here. This house has nothing but awful memories now.”
Attorney Michael Wasylik, who represents Visceglie in her lawsuit against Porcelli, said equity skimming has largely ended in Florida, and in many other parts of the country where the housing market has collapsed, because few homeowners have any equity left to steal.
But law enforcement officials say it is still going strong in areas like Oregon and Washington, where the real estate downturn was delayed.
Short sale perils
Even when equity is gone, desperate homeowners can be offered a new, false lifeline -- a variety of foreclosure fraud known as the short-sale scam. In a traditional short sale, consumers who owe more on their mortgage than their house is worth make arrangements to sell their home to a third party at below-market prices. Banks then forgive the difference between the sale price and the mortgage.
Financial institutions sometimes agree to such sales because they have little desire to foreclose on homes and incur the expense of selling the property themselves. For consumers, short sales can help them avoid the black mark of a foreclosure and relieve them of potential debt. But the deals are complicated, particularly because many loans are no longer held by the originating bank, but instead by trusts representing investors. A true last resort, short-sales generally take months to complete.
Fraudulent short-sale specialists often promise quick resolution for a fee. They can also hide the true value of the sale from parties involved and pocket the difference. For example, the con artist might persuade a buyer to pay $175,000 for a home with a mortgage of $200,000, then tell the bank the price was $150,000. The short-sale facilitator then pockets the $25,000 difference. Or, the buyer might trick both the homeowner and bank into agreeing on a well-below-market price, then sell the house immediately for a tidy profit, a scam that’s sometimes referred to as “equity creation.”
“There’s a lot of room for fraud in short sales,” said Wasylik, the Florida attorney.
Because victims who are just days away from foreclosure are in no position to negotiate, many accept almost any deal offered to them. The tragedy with short sales is they don’t help the homeowner as much as advertised. They won’t protect the victim’s credit score, for example. Because short sales rarely occur until foreclosure proceedings have begun, that will almost always negatively affect the homeowner’s credit score, says John Ulzheimer, a credit score expert who operates Credit.com.
“The marketing spin that some short sale specialists are putting on this makes me sick,” he said. “They are either lying to their customers or they are ignorant about credit scores. A short sale is considered as bad by the FICO (credit) scoring system as a foreclosure. … Nobody likes to hear that but it's the truth.”
In some cases, short-sale negotiators urge homeowners to agree to unfavorable settlements that leave the homeowner still on the hook for unpaid debt -- the difference between the mortgage and the short sale price. Banks, for obvious reasons, readily agree to such terms.
Confusion of equity
At the core of all these scams is the concept of home equity, which can be confusing for many homeowners. It’s also ephemeral, and can be stolen without a trace.
Consumers who are behind on their mortgage also are often misinformed about the consequences of foreclosure, which doesn’t necessarily result in the loss of all home equity. Many homeowners end up with some payment after their home is purchased in a foreclosure auction. After creditors are paid, former homeowners are entitled to the remainder of the sale proceeds, often a better deal than arrangements offered by rescue scammers.
Angela Carter, who never attended college, said she had no concept of home equity when Second Chance representatives knocked on her door offering “the solution you have been looking for.”
"These are millionaires,” she said. “They are very savvy. They could run a game on me very easily. I don't know anything about real estate. … I just want to stay in my home.”
RED TAPE WRESTLING TIPS
• Consumers facing foreclosure can get help, but they should be very careful where they look. Experts recommend ignoring unexpected solicitations, whether through the mail, by phone or in person. Instead, enlist the help of a HUD-certified counselor. A state-by-state list is available at HUD’s Web site.
• Attorney Dan Lindsey said there’s a reason rescue scam firms have “generic-sounding” names like Equity Preservation Incorporation. “They are hard to Google .. hard to do background checks on,” he said. Any rescue firm or individual seeking an up-front fee is likely running a scam, he said. But many scammers make their money later, at closing, so be wary of any for-profit firm that approaches immediately after foreclosure proceedings begin, he said.
• Consumers who engage in a short sale and benefit from debt forgiveness might get some bad news at the end of the year. In some cases, banks are sending 1099 tax forms to former homeowners, meaning the IRS will treat the forgiven debt as income, which could result in a hefty tax bill.
• Foreclosure can be better than a bad short sale or a bad rescue, despite the stigma attached to it.
• The Illinois law requiring that homeowners in a rescue transaction be paid at least 82 percent of the value of their home may sound like price fixing, but it’s an excellent and necessary guideline in an environment where struggling homeowners are not on equal footing with the parties they are negotiating with. Other states should follow suit. In the meantime, consumers can use Web sites like Zillow.com to get a general idea of the market value of their home, and should never engage in a deal that severely undervalues their equity.
• The worst thing a homeowner in trouble can do is avoid talking to the bank. Many scam artists will insist on that, telling homeowners not to talk to their lenders to facilitate negotiations. The moment an aid company insists on secrecy, run the other direction.
Bailout ignores all the empty houses
EMAIL THIS
TRACKBACKS
Trackbacks are links to weblogs that reference this post. Like comments, trackbacks do no appear until approved by us. The trackback URL for this post is: http://www.typepad.com/services/trackback/6a00d83451b0aa69e2010534ba4e6b970c
advertisement
BUY BOB SULLIVAN'S BOOK
Bob Sullivan's new book tells you why American consumers are such easy targets, and how you can always get a fair deal. Order it here.
Or, learn about Bob's other books by clicking here.
Red Tape Video
RED TAPE ARCHIVES
Hi
am I in the right spot? probably not oh well, I am in need of a site to Meet Sexy Locals in my city? Where can I find such a site, please suggest me one.
G'night
AAAESLLESO (Sent Feb 13, 2009 11:59:52 AM)
Companies will also add a warning to their product labels saying parents should not give young children allergy-relieving antihistamines to make them sleepy, the AP said. The inhibitors, such as finasteride and dutasteride, are a first-line treatment for an enlarged prostate -- a condition called benign prostatic hyperplasia, or BPH, which is common in older men. In announcing the new guidelines, Linda Suydam, president of the Consumer Healthcare Products Association, said they "reflect industry's overall commitment to the continued safe and appropriate use of children's oral OTC cough and cold medicines," the Associated Press reported. [url=http://buy-cr.healthfider.com/delayed-implantation-in-melatonin-obliga.html]delayed implantation in melatonin obliga[/url]; [url=http://scotch-brite.healthfider.com/can-accutane-cause-attention-deficit-dis.html]can accutane cause attention deficit dis[/url];
The inhibitors, such as finasteride and dutasteride, are a first-line treatment for an enlarged prostate -- a condition called benign prostatic hyperplasia, or BPH, which is common in older men. issue of the Journal of the American Medical Association, does not completely clear the class of medications known as 5-a reductase inhibitors, because it did not find out how the drugs affect long-term bone health. "That could be an even worse situation." Back in January, the FDA issued an updated health advisory that cough and cold preparations not be used to treat children under the age of 2 because of possible life-threatening complications. [url=http://aleve-pm.healthfider.com/rogaine-eyesight.html]rogaine eyesight[/url]; [url=http://when-does.healthfider.com/lasix-atlanta.html]lasix atlanta[/url];
Gymninton (Sent Oct 14, 2008 10:32:08 AM)
My husband and I want to go on a awesome trip soon. We were looking for advice. Anyone have any awesome locations? A way to save some cash would be nice too. Traveling is expensive these days.
SallyHilvbaters (Sent Oct 7, 2008 10:06:35 PM)
I would like to know from someone why big oil companys are getting a free ride on all this. It may be true that the housing industry is the fire wood, but oil is the fuel, and no one seems to be addressing the billions and billions of profits generated by the oil industry. Could it be the oil interests found in the white house?
(Sent Sep 26, 2008 2:26:50 PM)
Let's give the Carters the benefit of the doubt. There are many legitimate reasons why they had a mortgage for over 30 years. They may have had to refinance the house to do needed repairs and upgrades or pay for medical bills. The house is over 50 years old, and in 50 years time many things will need to be replaced, i.e., furnace, hot water heater, kitchen cabinets, countertops, roof, flooring, etc., and these things are not cheap to replace. God forbid if one gets sick because if there is little or no health insurance, then the doctor and hospital bills alone can wreak havoc on anyone's budget. There aren't a lot of people who can afford to pay $15,000 to $20,000 or more for house repairs or medical bills. Some of us just don't have the kind of money lying around. The fact remains is that the Carters were robbed of their home and its $100,000 equity. I hope the judge finds in their favor and not for the thief who is preying on those in desperate need.
Ellen, Poolesville, MD (Sent Sep 26, 2008 9:01:20 AM)
I am a loss mitigation counselor. I operate a Loss Mitigation Agency, which is not a scam and is a member of the BBB Online and we don’t charge upfront fees. I got into this business because of scammers preying on folks that are facing hard times. As a homeowner you have rights to professional services, and compensations for services are paid only if you get help and are incorporated into the closing. We are the most trusted housing agency in the U.S. We provide assistance but we do not get paid a fee upfront for the work that has not yet been provided to you. We do not work with those individuals or businesses that buy any portion of their client’s real estate as part of their counseling options. Regardless of how you got to this position or who is at fault you can get help if you are ready to start paying your mortgage. We can help. Visit us at www.almaohr.com or call us at (800)274-7143 ext.3
Eric Estrada, Newport News, Virginia (Sent Sep 22, 2008 5:00:57 PM)
EDM. Phoenix Washington- thank you for shedding factual information that is actually up to date. You, like me, are probably an honest investor that invests in education to be knowledgeable of these rapidly changing laws in the face of such inaccurate and blatant misinformation. This article is EXTREMELY slanted, contains many fallacies by omission,and easily could do more harm than good.
(Sent Sep 22, 2008 4:48:20 PM)
Hmmm, everyone is saying these are nasty horrible people, I think they are pretty damn smart. Probably not going to win any ethics contest and not scoring any points with the man up stairs, but very smart. Shame on the law makers who kept it legal for so long.
Burkescu, Boston, MA (Sent Sep 22, 2008 4:43:19 PM)
You know, all these holier-than-thou types who say "You should have consulted with a realtor/attorney/etc. sound like a bunch of shills for the scammers to me.
Here's a simple solution: STOP WRITING MORTGAGE DOCUMENTS IN 'LEGAL-ESE'. True, homeownership is not a 'right' in America, but it IS a reasonable expectation for those who work for a living. How about a document that says:
"I (the bank) will loan you $75,000, to be paid to Joe Smith for the purchase of his house at 123 Main Street. You (the purchaser) agree to pay me back at the rate of __% interest per year. This will be $____ per month for ___ years. You (the purchaser) will be responsible for paying insurance and property taxes on the property at 123 Main Street. You (the purchaser) will add to your monthly loan payment amount 1/12 of the insurance premium and 1/12 of the property tax assessment for a total of $____ to be paid every month on the ____ of the month for the next 30 years."
No misunderstandings, no 50,000 documents to sign, no middlemen(closing companies-get a REAL job, you leaches) for the new homeowner to pay.
It'll never happen; no opportunity to screw anyone!!
Sigh - Springfield, IL (Sent Sep 22, 2008 4:37:06 PM)
Great article, thanks. However, there is one glaring omission: Most of this type of fraud would not be possible if it weren't for violation of loan agreements which constitute what is referred to in the real estate/mortgage industry as an "illegal assumption": The vast majority of residential loans carry a clause which states that the lending agency must be informed before any transfer of deed and/or loan agreement with a third party occurs. E.g, HUD mandates all FHA, VA backed loans carry such a clause. Most loan officers, real estate agents, and title company officers either ignore informing and explaining this clause with their customers or gloss over it very quickly.
So, yes, ignorance and failure to do due diligence play a part in creating opportunity for these scammers but it is always the seduction of the ignorant which is the greater crime. The claim of so-called "ethical investors" that they they practice "full disclosure" with their "clients" is untrue. They know of the assumption approval clauses and that is why they always avoid transfer of deed done at a title company. (Even though they themselves have most likely previously employed a title company to check for property encumbrances or gone on-line and done so themselves) Most title companies would inform the seller of the assumption clause and ask for approval of the lender.
Unfortunately it is also the casual attitude of the mortgage lenders, themselves, which facilitate this process; in the case of sale/rental scams, the banks do not care who the payments are coming from as long as they are receiving payment. Also, 2nd mortgages should not be possible without notification of and first approval from the 1st lender. So, ignorance, incompetance and greed all are a part of this equation. However, it is most definitely criminal intention and behavior which obviate and motivate this criminal process and activity. The urge for "sumpthin for nuthin" and the obsessive pursuit of that is criminal rationale no matter how else you look at it.
So, your article should have included the advice that before you make ANY real estate transaction you insist that a bona fide title company of YOUR choice be included in the process. It is no guarantee - education is your primary defense. However, a title company is a good second defense and often a good source for the data you need to proceed with an ethical transaction and protect not only yourself but also, any other interested parties.
Michael F. Shema, Las Vegas, NV (Sent Sep 22, 2008 4:36:02 PM)
I was a victim of this kind of fraud and lost my home. I hope all Florida officials read this and do something about it. Enough is enough and we want something done about it we will not give up until we get your attention!! I lost my home with my family of five. Three children under 8, myself and my husband went through a lot. I don't want anyone else to go through what we went through. So please have a heart and do something about it NOW!!!
Party of Five! (Sent Sep 22, 2008 4:30:01 PM)
I know some elderly people this happened to. Fortunetly their scammers were dumber than dirt. The scammers forged a few signatures on important paper work. So they will probably end up in jail. As for scams these are all the mortgage companies fault. When I bought my house I had to sign a stack of papers that was four inches thick. The notary kept telling me not to read things just sign it. I believe this is pretty standard.
Kenny, California (Sent Sep 22, 2008 4:27:19 PM)
So my question is ... if a bank seizes a property that has lots of equity in it and then in turn sells the property ay auction and does not send the money to the former tenant ( homeowner), are they not committing fraud too?
As a financial councilor I find that people do not really have any interest in there financial welfare and /or care to be financially educated.
I feel sorry for Ms. Carter as all of those have posted also feel but she may have done as many others have done "the knee jerk" approach to their finances and did not taken the time necessary to seek financial help or NO ONE WOULD HELP HER.
The question to ask REALLY is, when a bank refuses to assist one or sets the bar so high that the average person cannot reach it is this any more criminal in the taking of equity in a property than the said financial criminals in this article.
Is it a crime when a bank sets a foreclosure per-diem rate (that is like a ticking bomb) at such a level that with in thirty days the penalty is so high that a person cannot fund the mortgage.
Is it a crime that the personal at the mortgage bank say NO to helping one with their mortgage that is in arrears.
When a bank takes a house with equity and in turn resells the house at at market value does it give the person that was living in it (homeowner) the equity balance? NO!
Where does the real crime lay?
This is a biased report and is not based on all of the facts and typical of this type of reporting.
Is it a crime when a realtor tells someone that they can spend more on a house than they really can because ALL mortgage information and formulas are based on GROSS INCOME and not net income.
Where is the crime that happens when a bank charges the home owner PMI insurance that has to be paid by the homeowner so that the bank doesn't lose there shirt and gets 20% reimbursement by the insurance company should there be a default by the homeowner?
Who are the criminals in this conversation?
This is really about big business being defrauded not the homeowner, as the home owner never really owned the property in the first place.
The banks lost the equity money.
(Sent Sep 22, 2008 4:19:43 PM)
I don't kick people when they are down, regardless of whose fault this may be. I am not a big fan of the big government that we have, and I am no lawyer or investor or anything like that. This is my take on this situation: we are a capitalist country, founded on rumrunners and seditious folks who didn't like how the English did business. SO--The Declaration of Independence tells us that when our elected officials see something wrong it is theirs AND our responsibility to right it. I see everyday the pain and sorrow that goes with being an average, hard-working, disabled, or otherwise challenged American. I also see the marginalizing, disenfranchising, and belittling of even the most vulnerable of these folks. I see a country that has fallen into depression all right--but not just a financial one, one of attitude. I care more about how to help my neighbor than to kick them when they are down. I care about helping if I can and praying when I cannot. I care that my country seems to care about money more than their people who are in it. I hate the blame game that goes on whenever someone gets it in the butt--bitch all you want, but where are the answers?
If I, as an American, do nothing, say nothing, and spend my time in critique, then I feel I am no better than the money-driven government who are acting worse than the street gangs I grew up around. If I don't get involved in the process, then I have no reason to complain, for then I did nothing. I want justice for these sharks and for the people who they hurt. I want our country to stand up. I am one who does, and I pay a dear price for it when I do, but I do it anyway because if I see a wrong, and I see I might be able to help, then I should. Because if I see it and do nothing, I am just as bad as those who do the deed.
Because of my ill health, I can't stand up as often or as loudly as I should, which makes me feel rotten to the core. I write this as I am dying, at a very young age, of cancer brought on by living downwind from a nuclear facility our government swore they would help clean up to keep people from dying. Now, I didn't know about that place when I moved here--does that make me stupid or a victim? I didn't do that research because all I cared about was getting my then dying husband back to his family in this valley, and I didn't know that this wasn't a safe place to be. I have spent many years jousting the windmill that is our government begging for them to at least be respectful of me as an American and they have not ever, not once, treated me as anything but a commodity to be sold to the highest bidder or worse as a goldbricker in spite of the many years I was able to (and did) work and pay my taxes. Here's the caveat: this happens everyday and we the people LET it happen over years and years of apathy towards our fellow Americans. This article just confirms that our elected officials don't care about their constituents, but they do care about making money. It seems that any time the government can make money off of a new law, then it becomes a law. I don't know the answers, and I am not wise or anything, it just seems like we the people should care more about righting the wrongs done than placing blame. Placing blame and rantings are not a solution--let's work together and find one for all the players here. Because if we do, then that means we're doing something instead of just ranting and raving about the unfairness or inequity of it all. Whatever I can do, I will do, even as a small, average American with no political pull, with few resources, I will help in any way I can to make these wrongs right. But please, let's stop placing blame on whoever is perceived to be in the wrong and let's DO SOMETHING! Count me in, for my country, for my children, for my family, for my fellow Americans, let's stop blame games and find answers! I may be sick and dying, but I'm not dead yet, and I will do whatever I can to help make the wrongs right.
Alix Mills, Washington State (Sent Sep 22, 2008 4:18:03 PM)
Ok so exactly when is sombody gonna put the brakes on and de-rail the crooks?and conventional type scammers arent the only ones either, I have to wonder about all those ad's for so-called reverse mortgages,my guess is that if those were looked at they would be found to be rip-offs as well.After all as a general rule anything that sounds to good to be true usualy is just another rip-off from all apearances the crooks are making a killing while everybody else pays the price.
Bobby Towe, Mckee, Kentucky (Sent Sep 22, 2008 4:14:51 PM)
I've never been the victim of that kind of scam--thank goodness. I'm just glad my momma didn't raise any fools. If I can't get the sweaquity out of my home neither can you! Are there truly this many stupid people in America? Please, don't answer that question I already know that there are. All those years of being ignorant aren’t so blissful, now are they? IF I DID NOT QUALIFY AT A REAL BANK (you know, the one your GRANDPARENTS BANK AT!!!)I did not go to a bank or broker NO ONE EVER heard of who was my age or younger!! But some people HAVE to learn the hard way! Easy come and easy go. So many people laughed at me for not Up sizing my home-- but I still live by OLD school truths. The home you owe cannot exceed more than three years salary and the car you own cannot exceed more than one year’s salary. If you cannot find anything in those ranges you are not looking in an area you can afford to live or a car you can afford to drive. America stop being so shallow! Everyone cannot own! That’s why there are landlords! It’s the AMERICAN DREAM to own a home-- does not mean it is the AMERICAN REALITY!!! Get a grip and get real get and get off drugs (legal and illegal) and LEARN to DEAL with it!!!!!
(Sent Sep 22, 2008 4:10:15 PM)
Interestingly, the bulk of these scams appear to be the work of african-american scam artists scamming uneducated and unsophisticated african american victims. Where are Jesse and Al while all of this is going on? Oh, I forgot, the victims are flat broke at this point, won't be able to make any 'donations', so Jesse and Al don't have any interest in them.
(Sent Sep 22, 2008 4:07:24 PM)
What amazes me is that in this day and age, People are taught to be aware of things that sound to good to be true. I am still amazed at how people fail to research huge financial descisions like the ones these people made that are "too good to be true".
Warnings about mortgage scams have been out and available for the past three years, and yet new cases are still happening everyday. While this is sad, there comes a time where people need to start being held accountable on both ends. Read every line before you sign contracts like this! Take the time to research or call a non profit for help! Yeah, it's sad, but it's your fault for not reading.
Lyndsay, Fairfield, CA (Sent Sep 22, 2008 4:04:29 PM)
I will try to make this story short. I was an idiot and co-signed a note for my daughter and her three childern. She got involved with a no-good hispanic gentleman, no racial slurs intended but he is bi-polar and a manic depressant and does not take his meds.So he lives with her and payments start coming to me saying she is a little behind. I jump her about them, he gets wind and within the week he made her move out. Forgot to mention he abuses her and one daughter that is not mexican had to go live with her mothers x back in Ne. and he in hispanic also. Now I am faceing forclosure. My husband and I are self employed and the business is down to a third of what we once did. There was a web-site on the internet about foreclosures and I called they wanted a 1000.00 up front so they could do a short-sale on it. My son told me not to give them all they info they wanted and look into the business. Well he was an attorney from California and I could not find him any where on the internet as an attorney. So I got ahold the bar from Arizona and was told he did not have to good of a standing with the bar association and to watch him. So now I got someone right here in Az.a realtor he has bent over backwards to help me and I really appreciate that very much. This is not something I want to do I did cherish my credit score. Now it has went to hell. So do watch out for the guys that promise you the world but only want your money. If it wasn't for my son I would be a 1000.00 more indebt. I will just wait it out and see. I tell the mortgage company that I am not the only one having to do this and I wont be the last. WATCH OUT!
Patty Reed (Sent Sep 22, 2008 4:02:53 PM)
Its really quite amazing the amount of sympathy that seems to come around for people who dont pay there debt obligations. Maybe we should all just forgive all debts. Maybe we should absolve everyone from actually being responsible for themselves while we are at it. Its funny how with all the finger pointing going on, somehow no one ever points the finger at the people who are not making good on there debt obligation. Instead we make excuses why its not there fault.
(Sent Sep 22, 2008 3:57:12 PM)
This has been going on for atleast the last decade. The only mortgage victims are the homeowners who lost their jobs and were will to do full doc loans. I feel for her because i have heard of people taking 2nds on your property without your knowledge. I am a loan officer myself and i am not a con artist. I have had MANY clients i have told, only purchase a home up to 130,000 well, they go out,and find one for 170,000 not living within their means. The crash was destined to happen, people believing they can have anything without sowing the proper seeds. Well those clients would go somewhere else. I also had clients whom i tried to GIVE fixed rates to! the problem is the fixed rate is usually .25 to .875 higher than the arm. consumers are not educated because if they were, they would have chose the fixed rate and applied more money to principal which would have reduced their overall interest paid anyway. believe it or not explaining this to clients is like teaching russian to a martian. consumers by homes when 100 makes or breaks them. it is not good. Americans, America is the place to be, the land of opportunity and wealth, but you must earn it. it does not fall from the sky or come knocking at your door. live in your means and stop tyring to keep up with the Jones.
lisa (Sent Sep 22, 2008 3:56:43 PM)
For those of you are critical of the homeowners in foreclosure, I hope you never have to go thru this situation. I am not an uneducated person, I worked in middle management in corporate America for over 6 years then I owned my own business. When I got in trouble with my mortgage because my business failed, I scraped up the money to pay the bank, at that time Great Western, now Washington Mutual. They refused to accept the payments. I was selling another house I owned. The real estate agent recommended me to an attorney "she knew". I went to see him twice. He told me that he could help. Well, he never did. After repeated calls and faxes to him to find out how the case was proceeding which he never answered, his secretary told me in confidence to call a bankruptcy attorney she knew and begged me not to tell who referred me. I was totally stressed at the time so my normally confident self and rational thinking was totally blind sided by this enormous and unexpected event. Needless to say, I had lost my home. I found out later that the RE agent was working with the attorney and the person who bought my house at auction. She was also sabotaging the sale of my other house but the buyer's RE agent stopped her at every turn. Never judge a person until you have walked a mile in their else's shoes. You never know how you will react when you get into a stressful situation as this.
Patricia, Boca Raton (Sent Sep 22, 2008 3:55:17 PM)
Do your research before you sign anything. Check the BBB and other sites. Why would you consider doing anything this important with someone who isn't listed on the BBB or has proper license? Loan modifications do help people save their homes. Too bad you have to go to a third party to make it happen. Banks wont return calls or take timely measures to help. Most cases it is too late when they do. I know they dont really want to offer modifications but if the other option is taking the house than why not. There are people who can help. Just beware of what you are doing! Dont trust websites and T.V. Get the facts. Only a Real Estate laywer can really help. Please read ever line of HUD's website about what it costs to participate in their modification help. The "rescuse housing bill" is not about saving the people. Again, why would you share your home equity with anyone else?
I help people everyday who are suffering from the market decline and possible loss of their home. We keep families in their homes. They own the home, and we work with the current lender. Do your research before you give anyone your money. I am sorry that there are people out there who have found yet another way to take advantage of people in need.
Celena, Hemet CA (Sent Sep 22, 2008 3:54:40 PM)
I understand what most homeowners are going through. I almost lost my home (2006) to a legitimate national mortgage company who holds my deed. It wasn't because I couldn't afford my home. Like many, I lost my job and ended up on disability. However, it has always bother me that they (mortgage company) may have been scamming me when they put me in a "work-out" program. I paid an erroneous monthly payment; $300 over what I could afford. Last year, for tax purposes, it showed I paid $8,300 in interest on my condo, when in the past I paid 3x less. I am currently seeking advice and possibly an investigation into whether my mortgage company was doing something shady. Personally, our lawmakers need to start tacking some serious prison terms on the crooks, and make it known that they are going to start cracking down.
JD of Colorado (Sent Sep 22, 2008 3:50:48 PM)
Living in a capitalist society puts consumers at the forefront of their own livelihood. It takes an exhausting amount of vigilance to truly be an aware buyer in our buyer-beware country. Lack of basic college level education for our citizens is why deregulation and privatization won’t succeed and why we should be waiting expectantly for the next big failure or the complete collapse of our way of life.
Lisa L, Reno, N.V. (Sent Sep 22, 2008 3:48:41 PM)
I personally am tired of the "bailouts" people get! Katrina, Lehman Brothers, mortage fraud. Seriously stop blaming everyone else for your misfortune and get educated!
(Sent Sep 22, 2008 3:46:06 PM)
The feds can do something - but unfortunately putting together a criminal case against a few of these vultures - takes time - too much time - because of our civil rights - I am not saying these rights should be ignored - but they do slow down law enforcement!
Vonnie Hinesley, Springfield, Il (Sent Sep 22, 2008 3:45:16 PM)
As much as I would like to sympathize with the Carter family,...I just can't get past the fact that after 46 YEARS, they still had a mortgage....shame...
RastaGal Kenly, NC (Sent Sep 22, 2008 3:45:02 PM)
S how have they owned the same home for 46 years and still owe money on it????? People have to stop treating their houses as credit cards and learn to live within their means. Before any of this happened to that lady, she should have never owed anything on her house to begin with.
(Sent Sep 22, 2008 3:43:22 PM)
A lot of good advice on this page. One thing I have not read is to the age of Mrs. Carter. No doubt after 46 years or morgage payemnts she must be well over 60. Very easy to take advantage of a senior citizen. When we lose our income we panic, cant afford to pay an upfront fee to a lawyer, banks dont give a damn about us. Our property taxes keep going up, (a lot of people owe more per year on property taxes than they do on morgage payments, look in your local paper, finder property for sale for unpayed taxes) Seniors must eat and have medical care, most on limited income. Most cities and States have free counsiling for Seniors. Senior Citizen Advocates they are most commonly referred to. Use them...For you people out there who know of a Senior needing help, guide them to these people that can help. Finally, all SCAM ARTISTS need to spend a lot of time in a prison
Jerry Mickelson, Sherrills Ford, N.C. (Sent Sep 22, 2008 3:42:50 PM)
this need to stop, the american people dont have that dream of owning your own home anymore. years ago husband and wife saved to put a down payment to buy a home and own it in 30yrs that american dream of gone.
lender realtor and bankers upper management have taken that dream away.
dianne hayward Ca (Sent Sep 22, 2008 3:39:33 PM)
It is sad that she got scammed, but I have to ask. How is the house not paid for after 46 years?
(Sent Sep 22, 2008 3:37:36 PM)
Why should american tax dollars bail out lenders and save them from lossing? This type of business has its risks and unfortunately too many companies have been willing to "risk" it on mortgages obviously geared towards those that arent well quilified. Now we bail them out and assume the garble that is the forclosure problem.
The family in the article said they lived in the home for 50 years... arent most home loans 30 year loans? Obviously there was something inherently wrong in them financing the purchase in the first place. Honestly yes its bad these poeple were scammed yes its bad that they couldnt play the mortgage but scam or no scam they would still loss their home. How much junk mail do all you folks honestly get? Do you take all of it seriously? I know i throw away alot of offers daily just by using common sense. Seeking a quick fix might make you consider one of these services but why not hire and attorney and seek legal advice before you plunge in head first?
This logic seems to suggest that i should shell out for a car k know i cant afford, but could get approved for and expect the government to bail me out when i can no longer make the payments. (this is a slight exaggeration but look at the home crisis and you seem the similarities)
really responsible, hackensack, nj (Sent Sep 22, 2008 3:37:18 PM)
First of all, if those signs "will buy your home" or even fraudulant companies exist, why is it so hard for the proper authorities who regulate fraud to call them up and find out how the scam works? Or maybe even Fine or put them out of the bullshyt business they run! My family and i were unfortunatly some of the victims of this fraud. We Had Ameriquest mortgage, which was a joke of a company who went downhill and then an even more evil company known as Countrywide which im sure all of you have heard of. Everything was fine until a mortgage person, who happens to be a family member none the less, told us it would be smart to go into an adjustable rate. Not to worry about anything. Thats when you should worry! I hope that bastard from countrywide and his cronies all get their deserved punishment in hell because in this lifetime, our government wont do anything about it. Last but not least...GET A LAWYER BEFORE YOU SIGN ANYTHING! Our cost is $1500 to get the contract and everything typed up and so on but im hoping its worth it. This way you can rest assured atleast you are trusting someone who has leagally assured you that you are not getting screwed! F all of you people who are scamming and making $ while at the same time are telling yourselves " hey its not my problem these people are naive."
(Sent Sep 22, 2008 3:34:25 PM)
With all of the laws in California regarding home sales there are no teeth in them. You are told that it is a civil problem. Yet you get prosecuted for taking someones livestock. But nothing happens when someone sells you a home that they built incorrectly and then fraudulently sell to someone else; without disclosing the fact that they only pulled a permit for the first 2 floors; not the third which would have required engineering. And the County of Humboldt building department can't say how they approved this building with all of its faults. I'm disgusted with California. After sinking all of your assets into a home plus more where do they think a retired couple is going to get the money to sue in court? They ignored the attorneys letter; didn't even respond to it. I certainly would call and find out why an attorney was sending me a letter.
Our legislators should be ashamed of themselves; they passed all of these laws with no thought to enforcing them, or punishment for ignoring them. This is why people keep breaking the rules and idiots like us keep following the rules and getting burned so badly.
(Sent Sep 22, 2008 3:33:03 PM)
“I had no idea what the building was worth,” she said. “And I had no idea they were buying my house. All along I thought they were giving me a loan.” this is right after she states" After signing a flurry of paperwork, she signed title of the house over to Second Chance, selling her house for $140,000 with the understanding that she would pay the firm rent and could repurchase the house a year later for $180,000. Well what is it? scammed or just stupid. Not to mention the fact that the family had lived in the home for over 46 years. What was the mortgage money used for in the first place? "Real" home repairs and fix-up or vacations, cloths and cars? The firm was already guaranteed a $40,000.00 profit, by her accounting. Had the original bank forclosed it is very doubtful that any equity money would spill over to her. How was she going to get a $180,000.00 mortgage to buy the house back in one year? No job (or a low paying job)and bad credit history - I'm sure she will qualify for that loan! Please stop blaming everyone else because you were to stupid to get a qualified legal opinion. Just would'nt spend the couple hundred bucks and look what happened.
Allen Scott (Sent Sep 22, 2008 3:28:32 PM)
In this world is naive' to think that them media (in any form) is going to look out for the individual.
TV ads, newspapers etc. are in it for the money just as the scammers are.
That's not to say all media are scammers, it just means that they are a business too (in it for the bottom line).
(Sent Sep 22, 2008 3:28:07 PM)
My husband was an honest mortgage broker, who did help out a few people by buying their homes, with full intentions of selling them back, the thanks he got, they did care anymore about our credit then they did their own. They stopped paying there rent (not inflated rent) in few cases they even paid less.I agree not ALL of these so called victims are victims, just the lazy bums who always cry foul, because they know the squeeky wheel gets the oil. I don't feel sorry for them, they need to learn to read, understand, and ask questions!! in other words Educate yourself, before you sign!! Suck it UP, We have too! thanks to a few slugs!!!!
Jane doe, madison wi (Sent Sep 22, 2008 3:27:08 PM)
After a newly invented dental appliance was aired on NBC news stations in 2004, it became an instant hit. Soon after, a few dentists determined to cash in on its popularity presented a plastic appliance, claimed it that it was the same thing and conned the media to lure unsuspecting patients to fall for their sham. Many patients who wasted their hard earned money on those appliances were extremely disappointed and the ones who were lucky enough to get $500 back were required to sign an agreement that no action would be taken against the providing dentist. As one patient who was victimized by one of the participating dentist put it, “How can dentists be allowed to sell them?”
Cybercorrespondent
Cybercorrespondent, Chicago, Illinois (Sent Sep 22, 2008 3:25:20 PM)
In the 1980's I had a knock at the door from a salesman offering me a home equity loan.
I don't know how he found out that I owed a small amount of equity in my home (at the time) less than $5,000.00.
Needless to say, I sent him packing.
I don't believe in home equity loans or reverse mortages. They all seem like a scam to me.
Stay away from door-to-door solictors and tv ads for home equity loans or those so-called construction companies that offer to do repairs/rennovations for you in exchange for home equity.
If you have elderly relatives watch out as that is their favorites targets as well as low-income families who own.
Something else you
(Sent Sep 22, 2008 3:24:17 PM)
There are scammers everywhere and they *will* take advantage of these people. There is only one sure way of staying away - don't put yourself in a vulnerable position.
I'm sick and tired of irresponible homeowners blaming someone else for their own mistakes - from getting a loan that is unaffordable on long-term to not reading the contract... not thinking "what if I lose my job"... If you can't easily afford $800/mo for each $100k of loan then the house is too expensive for you, period. No ifs and buts.
Wife and I were "qualified" for a $700k loan, but we knew that realistically we couldn't afford more than 400k without having to cut on other expenses - so we got a 320k loan that leaves us enough change to actually enjoy life.
Anonymous Coward, CT (Sent Sep 22, 2008 3:22:01 PM)
typical. and even more typical that someone will just let the poor lady get the boot.
(Sent Sep 22, 2008 3:20:56 PM)
Most of us are much happier thinking that people got themselves into predicaments because they "did something wrong". It is just too frightening to realize how fragile financial stability is with the present economic structure. It takes basic common sense and inner fortitude to face the reality of where our income comes from. The same mentality was promulgated during the first years of the Great Depression of the nineteen- hirty's. Truth is, if people are not spending money, they might not be buying the service you provide, the widget you make, or the taxes to pay your government salary. Simply put, even if you want to believe that only over-spending got the majority of folks into hot water, despite the fact that people have been losing real income since the 1970's, despite the catastrophic spiral of health care costs, food, heating,etc., then those foolishly over-spending folks probably got you your fortune, or kept your job afloat, or paid for your kids college funds. I don't spend money I don't have, and consequently don't really buy much, so not doing my part in keeping many of your jobs safe. Think about it! When thousands lose their jobs - who buys what your income depends on selling? While those at the very top of this economically predatory food chain can talk about this being a great time to buy, it is because they have short memories - we could lose more than just our historically level playing field, we could lose the social stability that has given us the capacity to produce and survive. Our parents and grandparents figured out that we are all in this together back in the 1930's as they got a clear picture of what too many without and too few with too much brings in it's wake. No one has not benefited from the housing bubble - the money was not siphoned off by these over-spenders into off-shore accounts - except those who are losing their homes. Less hysterical application of wishful thinking and more hard cold facts will yield less finger-pointing and more creative, forward thinking ways to keep the economy doing what it is supposed to do in this country - provide people willing to work for it the chance for a decent life, with a decent retirement. This may mean a return to understanding that "the economy" is there to serve the people, providign the means for the exchange of goods and services. Human beings have tried various forms of economic structures to accomplish this, if we have outgrown the current one, it may need altering, updating or fundamental repair. Better to get busy with that work, than spending our time and energy trying to figure out ways that it won't happen to us because we "did everything right".
Kate, Portland, Oregon (Sent Sep 22, 2008 3:15:24 PM)
we did refinance from one of those infomercials and they did help out. Thank God we were lucky enough not to be on of the scammed ones. we now can afford to live and our mortgage dropped significantly. we checked out that states BBB first and got references.
Lucky, CO (Sent Sep 22, 2008 3:13:37 PM)
In business, you do not get what you deserve but you get what you negotiated. Always pay attention since there are lots of fraudsters out there. The worst is that this kind of fraud is often considered civil problem and this is where is hurts the most. The lawyers will rip you off until you lose the entire equity in your home. Goddamn!
chike (Sent Sep 22, 2008 3:11:41 PM)
I myself lost my home because my loan was sold to a "loan servicer" that refused to refinance or even talk to me. They received my last three mortgage payments I know because I sent them thru registered mail. They just never cashed the cashier's checks and they took my house out from under me. These, and the other related crimes are a real problem right now. Someone needs to declare open season on this frauds and hunt them down and prosecute them.
(Sent Sep 22, 2008 3:11:38 PM)
Republicans.
You have 2 choices.
Do the right thing. Vote for Obama.
Or if your party just makes you sick but you just can't vote Dem because of pride...don't vote at all!
colin paterson (Sent Sep 22, 2008 3:10:05 PM)
You don't hear much about the Mafia anymore, I wonder why? Could it be that they have found it more lucrative in the banking business?
Phil, Oregon coast (Sent Sep 22, 2008 3:02:36 PM)
Ok. Seriously! So does anyone recognize that these people need to take responsibility for their actions and quit with the "I didnt know". It is very very old to hear that time and time again.
That you purchased a home over your budget just because you "qualified" for the loan is not my error, it is yours. Did you even do the math to see if you can make the payments now AND when the ARM adjusts. What do you think "adjustable rate mortgage" means? If you are struggling now what is going to change between now and when the morgage adjusts UP? Do you really think you will be more able to make the payments when they go up 2%,3%,4%,5%.
And that the bank "qualified" you for a loan way over your budget is their problem. Again not my fault!! I promise you they did the math!
But here I am bailing you both out of the situation that you got yourselves into. Americans need to learn to live within their means and take responsibility for their own actions however right or wrong they are.
Your deeds are going to make it nearly impossible for me a first time home buyer with outstanding credit(I worked hard for that!!)to purchase a home that I CAN afford.
And as far as the scammers go...again people take responsibility for your actions! There is so much in the media right now about all of these scams why in the world would anyone allow themselves be taken advantage of!? You would have to have blinders on or live in a bubble to not be aware of what is happening.
shapeupamerica!, KC, Kansas (Sent Sep 22, 2008 3:02:29 PM)
Not defending what these firms are doing, but the homeowners risked losing the properties before those firms ever entered the picture.
ummmm (Sent Sep 22, 2008 3:01:42 PM)
This is a horrible devil driven scheme... My wife an I were also victims of a similar scheme.. A home we were attempting to buy after ppaying out $2500/mth for over a 13 months, in the title search we found out that the landlord really did not own the property... In the investigation it was found out that the real estate broker, the assummed land lord and a mortgage firm were all in the scheme.. The actual owner of the property did not even know that she had a home in her name or credit... We wee advised by the OAG and the mortgage lender to find other dwellings.. We have since purchased a home...
(Sent Sep 22, 2008 3:01:11 PM)
It's amazing how many comments state that the fault is that of the homeowner. While I agree that they should share some responsibility, most of the blame should be placed on the mortgage brokers for selling those people loans in the first place! It's easy to say that people should read documents before they sign, but many people don't truly grasp what they're signing. I've read documents before and when I think I understand what is being said, it turns out that I interpreted it wrong. And for the person who said that it only costs $100 to $150 to hire a lawyer--you need to take into consideration that some of those people cannot afford $100 for legal advice. Some of them may not even have a job or can't afford to pay for their medication, gas, or groceries.
It upsets me when I hear people and ads cramming it down everyone's throat about "Stop wasting money on rent. Buy a home!" First and foremost, renting is NOT a waste of money! In exchange for the money you pay every month you get access to a space where you can sleep, shower, prepare a meal and stay cool/warm. How is that a waste of money? And owning sounds beautiful because you can paint the walls, but what about a housing market where you may actually owe more money on your mortgage than your home is worth? Or the tax bills every year? Or condo fees every month? Or the fact that if the plumbing breaks down in your house and requires work, you will be responsible for hiring someone if it turns into a job worth more than $10,000? And in response to the person who chastised the woman in the article for the house in her generation for five decades....I'm sure the house may have been paid off, but considering the house is more than 40 years old, I wouldn't be surprised if they refinanced the house to make home improvements. Homes that old don't have central air and need more upkeep. And if they refinanced for a vacation or car, so what?! There were no stipulations on how to spend the money you received in refinancing. Would that be smart? No, but the house belongs to their family and they can do whatever they want to do, no matter how stupid!
N. Williams (Sent Sep 22, 2008 2:55:36 PM)
25 years ago, I went to the closing on my house along with an attorney. I caught the place where it said that foreclosure could begin after one missed payment. I did not catch the place on the termite inspection where it stated that the house had a major structural flaw. To expect people without an extensive education in legal matters to catch these described scams is crazy. You are given stacks of papers to decifer and have to trust someone. Unfortunately, your lawyer may be in on the scam too.
carol corbitt, st. augustine, fl (Sent Sep 22, 2008 2:52:43 PM)
Apparently this website is keen on censorship since my last comments were not published. They were about the subject matter and also followed suite to other comments. Someone out there seems to have a power or control problem.....
Freedom_Warrior, Orlando, Florida (Sent Sep 22, 2008 2:52:35 PM)
People are asking how someone could live with themselves after doing this to people. It's called being a sociopath - a person who lacks any ability to show empathy for others (Google the term for a complete description). A recent study found that 1 out of 10 people worldwide have sociopathic tendencies. It's the kind of person who rips someone off and then brags to others about it to show how clever they are - "Ha ha! Suckers! I got over on them!" It's the kind of people for whom the ends justify the means, the ends being their own personal wealth - "I made out ok, too bad for them." Judging from the number of jerks I have met in my life, I think the 1 out of 10 estimate might be a little low. I just happen to believe in Karma and that these people will eventually get what they deserve.
Matt M., San Francisco, CA (Sent Sep 22, 2008 2:52:31 PM)
If you really look at this mess everyone on down the line is culpable. The banks, mortgage companies, brokers, scammers and the ones who bought their homes knowing full well that they could not afford them. I have very little sympathy for the homeowners who mistated their incomes and bought more than they could afford. That is greed too and also trying to keep up with the joneses.
Everyone here is at fault and look now what it has done to our economy. A 700 billion bailout so our economy doesn't go down the toilet due to greed plain and simple. You all should be ashamed of yourselves and quit crying for the mess you got yourself into...especially the homeowners.
As far as I am concerned everyone got to wake the heck up and live within your means. I am 47 years old, never had a credit card, always paid cash for what I needed and have about 2 grand in debt for a student loan. My father taught me well...if you do not need it and cannot afford it then do without. If you want something bad enough then work your butt off for it, save your money and then buy it. Normally if you do that you will see just how much you really want that 180,000.00 home, the 35,000 suv and that 5,000 big screen t.v home entertainment system.
Give it a break...you all are getting exactly what you deserve.
Frank, North Conway, N.H. (Sent Sep 22, 2008 2:50:58 PM)
If the investor would not have purchashed the property
and kept it going into forclosure , would she
be living there now? When she sold it to the investor
doesnt the house become his? So cant he get a 2nd mortgage on his house? just wondering
(Sent Sep 22, 2008 2:50:22 PM)
If I had the chance, I would cut the index fingers and thumbs off of these scammers with a pair of garden scissors. I detest these type of people.
David, Chula Vista, CA (Sent Sep 22, 2008 2:49:39 PM)
In the 1800's, it was "Patent Medicines" made primarily from alcohol, Laudanum and lead salts. During the Dust Bowl era, it was "rain makers". In the '60's and '70's it was Amway and other pyramid schemes. In the 80's and '90's it was day trading in penny stocks. Now it's real estate scams. The only thing which has changed is the snake-oil salesmen's approach.
...Oh, and the fact that the snake-oil salesmen had their very own bought-and-paid-for "co-Presidents" throughout the '90s to completely gut banking regulations and sell out to special interests in exchange for campaign funding...
Nope, not Reagan. Nope, neither Bush. Hint: Their party's current Vice-Presidential candidate just last week announced that it's American's "patriotic duty" to pay higher taxes...
Ann, KCMO (Sent Sep 22, 2008 2:49:18 PM)
And people wonder why the banks need to be rescued. The bank offered a mortgage in exchange for the title to the house. She didn't pay the mortgage. Then she got scammed. The bank ends up taking it in the a$$ by a judge that prevents the bank from fulfilling the contract that she signed. The scammer stole her equity. The judge stole the security owned by the bank.
Clearly go after con men and put them away, hang em shoot em, I dont care. But dont steal from the bank too! It's not their fault, she defaulted on the mortgage before the scammer got involved.
(Sent Sep 22, 2008 2:47:32 PM)
Got foreclosed on 6-7yrs ago...my bank sold my mortgage to Atlantic Mortgage in Georgia and they turned around and changed their name! The law firm that has been helping these mortgage co.s is called Gray + End! There was a 2nd mortgage and the profit from the foreclosure was to go to them but the 1st mortgage kept it...was wondering if I could get my credit report cleared due to this fact??? Glen Cook
(Sent Sep 22, 2008 2:46:59 PM)
Why are the mortgage companies considered the villians in all this? Suppose I am a mortgage lender. You fraudulently misstate your income and obtain a loan on a house you can't afford. As the lender, I stand to lose hundreds of thousands of dollars. Why is it when I seize the house to regain a small portion of my money I am called evil and greedy?
The Carter family mentioned in the article have owned the house for 46 years. It should have been paid off long ago. They are to blame for their sad situation.
However, I agree that companies that prey on foolish, desperate people are scum and should be jailed.
Walter-Upland, Ca (Sent Sep 22, 2008 2:45:21 PM)
Great article and comments. I was facing foreclosure a few years ago and I was surprised with the phone calls at home, my cell and my work, in addition to people at my door, the mail and phony checks I received. Thanks for the update.
Margo, Glendale, AZ (Sent Sep 22, 2008 2:44:19 PM)
I feel bad for the people in these stories from places like the midwest, but i think readers need to stop and think about bubble real estate markets like florida. Does the rest of the country realize that it is bailing out horrible spending decisions by consumers in places like south florida???
ultimately, the average american has a negative savings rate and wants to spend way more than they can ever afford. here in s. florida, many people were MORE than willing to overleverage themselves KNOWINGLY because they were PART of the scam of property flipping. they knew property prices were not going to continue going up indefinately at 30%. Some people got caught at the top, and now are facing foreclosure. sorry, no bailout for you funded by me. I bought a house i could afford and I pay my mortgate on time.
for the rest of the country, WAKE THE F UP! the government won't protect you. we go trhough these cycles every decade or so with downturns in the economy and credit problems and we always want a bailout of some sort. In good times, people need to learn to save the way they do elsewhere in the world, so you don't have to foreclose in bad times.
kayse, boca raton FL (Sent Sep 22, 2008 2:42:39 PM)
I agree, the government should but a halt to these practices. I am currently involved in one of those "companies". My husband left and because the mortgage is in my name I was left with a huge mortgage payment. I began receiving letters and was told they were recommended by better business bureau. This firm in turn linked me with a firm in Florida that supposedly worked with my mortgage company directly. I was informed I would charged a fee of $600.00 to be divided in 2 payments. Well, needless when I checked my account for the debit amount it was for $490.00. I contacted the company out of Florida and the representative "swore" she didn't quote a price of 600 but rather 800.00.... I was informed by this firm not to contact the mortgage company but I contacted them regarding a mortgage payment. The mortgage company then informed me they would work with me and the company couldn't do anymore than I could myself. Needless to say, I'm still behind on mortgage payments and out of $490.00 that could have been sent towards a payment. PLEASE BE MINDFUL!!!
md (Sent Sep 22, 2008 2:42:18 PM)
How idiotic is it that we the tax payer are bailing the banks that gave out these pick-a-pay loans to unqualified buyers. Then, what were the buyers thinking? We need to get rid of the "Catching up with the Jones mentality". Hold the true culprits accountable and get back to basics.
FED-UP
Fed-Up (Sent Sep 22, 2008 2:40:03 PM)
How could one pay for a house for 5 decades and not own the house? This families' problems started long before they contacted Second Chance. Read the papers before you sign them!
Eaglebear, Austin, TX (Sent Sep 22, 2008 2:40:01 PM)
Jim,
Not sure if you saw this article.
Elena Dokuchayeva (Sent Sep 22, 2008 2:38:06 PM)
Congress and the Bush administration are planning to bail out all of the big, greedy banks, insurance companies and investment firms, who by the way have been the "advisors" of the American people and advised us where and how to put our investment money. Smart advise, huh? They can't even wisely invest their own money. Why can't the government bail out the people who were victims of such mortgage scams and greedy financial institutions? Good question?
Forrest Green, Washington D.C. (Sent Sep 22, 2008 2:37:56 PM)
My question is: Why, after almost five decades, does Angela Carter's family not own this house outright, and why was Carter borrowing 140k against the house?
Scam artists, including subprime lenders and many others responsible for our financial mess, undoubtedly need prison sentences; but homeowners need to exercise common sense in relation to their homes.
If your home is yours, free and clear, without a mortgage, DO NOT borrow against it unless it is as an absolute (and I mean ABSOLUTE) last resort and a true emergency. Also, if you have a mortgage, and you've built up equity, the same rule applies. Unless it is is a last resort and a true emergency.
Emergencies are not vacations, new cars, new clothes, etc. Those items require patience for saving if you do not possess the means to purchase or finance without tapping your home's equity.
It's time that Americans took some individual financial responsibility and use some common sense.
J. Jones (Sent Sep 22, 2008 2:37:14 PM)
One important thing you must realize about this whole mess, is that the government will NOT step in to help middle, or lesser class people, because there is simply nothing in it for them. The real crime is that our lawmakers, and enforcers walk hand, in hand with the criminals they are supposed to protect us from, it's too late to corral corruption, because it is rampant in government, religion, business, and our own system of law enforcement. What has happened to our once beloved country? Good luck, and God help us all, as we really need it,
Don G., Golden, Mo. (Sent Sep 22, 2008 2:35:56 PM)
The next article Mr.Sullivan needs to write about is Controlled Business Associations or Affiliated Business Arrangements in which the Builder or Real Estate Broker owns the title company and the mortgage company and aggressively makes the buyer uses those companies to close the sale.The consumer is hurt because the title company and mortgage company have a conflict of interst and aggressively get the buyer to sign loan papers which benefit the builder/real estate broker and not the consumer.The consumer doesn't know what they are signing and end up in foreclosure because they didn't have an independent title settlement attorney and independent bank or mortgage company for theeir purchase.THIS SHOULD HAVE BEEN ADDRESSED BY CONGRESS IN THE NEW HOUSING LEGISLATION !
(Sent Sep 22, 2008 2:35:35 PM)
A quick and thoughtful read of Proverbs will explain pretty clearly how people can fall for scams of this nature. It's also a good time to remember that Jesus advises us to store our treasure up in heaven, not on earth.
Danny Wilson (Sent Sep 22, 2008 2:34:54 PM)
The only way of stopping this type of extream moronic behavor is to put in place extream penelties. Yes, life in prison is not too extream for those who choose to deliver so much suffering on so many of their fellowman.Yes, even the death penelty shouldn't be ruled out for such scum! These people are our worst possable enemies, because they hide right amoung us pretending to be a friend all the while betraying us from every side, using sleezy lawyers and contemtable judges too cover for them. NO! We don't need them,and it's high time we stood up on our hind legs and started doing something about it besides talk. Yes it's high time to put our congressmen and senators on notice to clean up their house, and get this scum of our streets and out of our lives! NOW!
(Sent Sep 22, 2008 2:34:51 PM)
Why should you be surprised that people fall for these scams? Remember a few years ago when telephone psychics were all the rage? The stupidity of the American people never ceases to amaze me.
Next, these dolts will vote for Obama! Disgusting.
Colin-Ontario CA. (Sent Sep 22, 2008 2:33:27 PM)
Hey Tim, AZ. I ALMOST fell for the "modification" gimmick, but before forking over $300 a month for "their people" to negotiate with my bank on a loan modification, I simply called the bank that holds my mortgage and asked about their policy on loan modification. I was told they don't do that any more and the only way I could help myself was to re-finance which the "scam company" told me I didn't need to do bcuz all I needed was a loan modification. I was wondering how they could guarantee this without knowing my bank's policies regarding loan modifications. Save yourself some $ by asking your bank what they are willing to do to work with u to save your home. You'll be surprised (and it won't cost anything for the info) JM, MD
Jay Moss. Laurel, MD 20724 (Sent Sep 22, 2008 2:33:25 PM)
What ever happened to the concept of 'Let the buyer beware?' Have these people no clue!
(Sent Sep 22, 2008 2:33:11 PM)
Law?? There is no law enforcement left in America. There are laws on the books right now to prosecute these scam artists but no one is using them in the Courts!
As for the bailout--- Let me get this straight... Instead of providing help to those in trouble with foreclosure looming and working with the Banks AND their customers, Bush passes a bill that in effect, transfers money from us poor tax payers to his rich business owners and the scam artists!! Excuse me--isn't this called Socialism???
CDfromAZ (Sent Sep 22, 2008 2:32:56 PM)
This happened to us in Saginaw, MI through a well known family who sells houses! They took our money, our hosue and stole from us in the process leavign us out in cold of winter.
All while takaing out loans on the house we "owned." Now we ahve a bad credit rating and can't get another. And who is getting bailed out in this housing mess? And who is gettig to foot the bill? The ones(majority) who should be held accountable!
C.J. Saginaw, MI (Sent Sep 22, 2008 2:32:46 PM)
wow, listen to yourselves. blame to government. blame the scam artist. blame the education system. some here even blamed the advertising agencies for asking us to make poor choices 24 hrs a day. It still comes down to this for most people. If you can't afford it don't buy it. I work hard, bought a house I could afford on my income (not what the bank told me I could afford), settled for a 30 yr fixed mortgage and did not buy the new furniture and care I "wanted" because I did not want the extra debt. I put money into retirement as I know social security will not be around in 25 yrs when I am ready to retire and I have lived below my means to keep over six months of debt payments in the bank. Could something still go wrong and I end up in big trouble? definately but for most here on this thread I would imagine you have allowed the idea of big brother governemnt to fix all the problems take the place of the american spirit. Help yourself and your neighbor.
(Sent Sep 22, 2008 2:31:50 PM)
The jackels should be hanging from the lamp posts.
jdtseattlewa (Sent Sep 22, 2008 2:29:21 PM)
I agree, the government should but a halt to these practices. I am currently involved in one of those "companies". My husband left and because the mortgage is in my name I was left with a huge mortgage payment. I began receiving letters and was told they were recommended by better business bureau. This firm in turn linked me with a firm in Florida that supposedly worked with my mortgage company directly. I was informed I would charged a fee of $600.00 to be divided in 2 payments. Well, needless when I checked my account for the debit amount it was for $490.00. I contacted the company out of Florida and the representative "swore" she didn't quote a price of 600 but rather 800.00.... I was informed by this firm not to contact the mortgage company but I contacted them regarding a mortgage payment. The mortgage company then informed me they would work with me and the company couldn't do anymore than I could myself. Needless to say, I'm still behind on mortgage payments and out of $490.00 that could have been sent towards a payment. PLEASE BE MINDFUL!!!
md (Sent Sep 22, 2008 2:27:53 PM)
Although I found the story unbelievable, one of the commenters - James & Indy Wright - have a far worse story than this one.
Sadie Boswell, Lutherville, MD (Sent Sep 22, 2008 2:27:49 PM)
After reviewing the horrible stories I find it amazing that these mortgage companies take forever to work out these loans, yet they claim they are doing such a good job at it. If their lender was more responsive this probably would not have happened or was a little more forthcoming with what to do. How is it that our government can bail out private companies but can not help these homeowners. It would be far cheaper. Unitl American's say enough is enough you will be lead to slaughter. These people are making and have made millions off your backs and will continue until you stand up. The rich is only getting richer, believe me this is not to save the economy but to save the have's not the have not's. Wake Up America.
(Sent Sep 22, 2008 2:25:53 PM)
I did foreclosure investing and short sales for a while and here is what I've learned. Many homeowners who are foreclosed upon simply can't afford their homes or pay other bills before they pay their mortgage. While Im sure there are scammers out there I would say this. Beware - if someone contacts you to buy your house outright, they are probably legitimate. If they promise to buy your house and rent it to you it is bad news for you - because you still probably can't afford the rent and the buyer probably just wants your property. A legitimate buyer should shy away from this type of agreement because the renter almost always fails to pay the rent and ends up blaming you for "scamming them". Don't be fooled. There are as many scamming mortgagors in default as there are "scammers" looking to take your property. Many homeowners scammers until recently could file for bankruptcy protection multiple times and play the system for years , running up the late fees and non payments well past the true value of the home. Is the Lender just supposed to forgive that? In a case where the buyer tries to help the owner and make a little money by requesting a short sale from the Lender, the lender refuses because the homeowner has not paid the mortgage for years. Both the homeowner and the buyer/investor must be honest for this to work. The only way both parties win is if homeowner comes to grip with the fact that they can't afford their home and need to part with it and realize they are not going to get full market value for a house in foreclosure, and the buyer realizes that that you can help someone without taking advantage of them. I always treated my clients with integrity and explained up front exactly what would take place. You can help people in this business and still make money, just don't let greed get in the way.
Jane Doe, New Jersey (Sent Sep 22, 2008 2:25:27 PM)
Is anyone paying attention? What are the homeowners with these bad loans going to get out of this bailout? A different entity sending them foreclosure notices? An even larger bureaucracy to get through for loan modification? And, with all the scam artists out there why isn't the White Collar Crimes Unit (or whatever they're called) of the FBI working night and day to make this stop?
I have a very simple solution that stops the blame game and maybe puts the economy back on track. Here's how it would work:
1. Homeowner sends appraisal or tax value to mortgage company. If the mortgage was the original loan for purchase of the property this could be a reasonable valuation of the property.
2. As long as the homeowner still has income sufficient to make mortgage payments,the mortgage company would rewrite the loan at current rates.
3. The homeowner only gets one shot at this 'do over'.
This stops the housing market from being flooded with foreclosed properties while it starts getting money back to the investment banks, Fannie & Freddie (US GOVT). It would seem that the money people would be better off getting regular payments on less money than no payments on more. I'm sure there are a million laws that would prevent this from working.
Also, I agree with the others who have commented that the managers, CFO's, CEO's, etc should be held accountable. When Enron was robbed those folks went to jail.
And while I'm at it, many of you have no sympathy for the homeowners, but isn't that exactly what is being shown to the lenders who weren't crying as long as they were getting their money? Now that they have to face the ramifications of their greed they want someone else to be responsible.
Gayle J, Minneapolis MN (Sent Sep 22, 2008 2:25:00 PM)
Taking a page from the Recording Industry Arts Association, I think we could legally hire a third party to play part of government sanctioned vigilantes to deal with predatory foreclosure assistance programs.
First off, I'd like to say that individuals in this crisis should form a collective entity. Form a coalition, then if the entity grows large enough, hire legal assistance, and eventually lawyers to act as lobbyists - but actually it's quite easy to see a Congressman without a lobbyist. Just show up here in DC.
Continually bring the topic to your Senators through the newly formed non-profit coalition. How? Find members in multiple states so that you can hit up your Congressman across states and not only contact one state's Congressman. Be sure to repeatedly do this, don't get willy.
Now as a legal entity, you can start prosecuting predatory lenders/mortgage assistance programs. This is how EFF started and other organizations. Also, be sure to get in line with banks and respected mortgage institutions for grants or such agreeing to sponsorships, you'd be surprise how such a well connected organizaiton can hammer out fraud.
Soon this organization gets media attention, especially during lawsuits and then the rest is history.
Mark Stickle, Washington DC (Sent Sep 22, 2008 2:24:27 PM)
The media generalizes too much. Not all who short-sale, flip, and mortgage rescue do it criminally and deviously. Let's face it though, there is potentially large income income market in foreclosures. Someone is going to buy those properties eventually. Let's not dismiss intellect either, we get into our own mortgages, we sign the papers, ignorance is no excuse to call someone a victim and label a sector of free enterprize "criminal." There should be truths and best lending practices established in this type of business though. Currently it is open range hunting and many investors are flagarantly and purposely taking advantage of someone's unfortunate situation. And there is a legal way to do this. There is no moral code, that is the biggest problem. But not all are doing as such, the better ones offer a win-win situation for both parties. Someone is always going to make money in any transaction. We live in a capalistic society and let's face it, noone is looking out completely for the other guy and noone is going to rescue anyone if it doesn't benefit the rescuer somehow. Shame on us for getting ourselves into the situations we get ourselves into. But that's what our country teaches us now: more, better, bigger, faster, and now. We are becoming an uneducated country. We don't care for our fellow man anymore until we need our fellow man to care about us. We are a selfish society and our media feeds this to us very well. Nothing in America is free, is it so surprising that someone is trying to make fortune off of your misfortune? Wake up America and take responsibility for our actions and transactions. Some legitimate misfortunes happen to many people, but the majority of the home foreclosures and mortgage trouble out there is not due to misfortune it is due to bad choices and irresposiblity. No one forces the hand to apply the ink, no one forces the mind to conform, no one makes anyone spend the way they do. The best way to get out of the hole is to stop digging it. Communication. Imagine... We should go after the core of the problem, not the result of it. The problem isn't the realestate investor's market, there has always been one and always will be one, the problem is getting accurate information and options to the American general public so they can make infomed decisions. And it should be taught from elementary school through adulthood. America has enough bandaids on its social wounds.
(Sent Sep 22, 2008 2:23:04 PM)
Short Sale Equity creation is not a scam and who ever wrote this needs to get their facts straight. I have been doing foreclosre short sales since the downturn in the market. The BANK ORDERS AND PAYS FOR THEIR OWN APPRAISAL. I can tell the bank whatever price I want to purchase it at. The bank makes the physically descision on a discount based on the appraisal amount that they pay for and the bank loss guidelines. IE: 82% of appraised value. If the bank decides because of the turn off in the market that they are willing to short discount a $200K mortgage for $120K and accept the loss ... it is because the bank knows that they will lose more money by holding the mortgage and trying to protect it from vandalism, copper theft, and holding cost. If the bank agrees to let me get it a bargain price I can choose to do what ever I want to tdo with it including quick turn it for a fast profit. All parties involved including the homeowners are fully aware of what is going on. The homeowners have to attend the closing and sign final paperwork. The homeowner owns a home they cant afford and the alternate is foreclosure and a possible deficency judgement. Some one really needs to get their facts straight.....
Ray Ellis, Cincinnati OH (Sent Sep 22, 2008 2:22:58 PM)
The police are too busy protecting society from pot-smokers and confiscating their property for their own use to go after these scammers. Besides most of the cops are way stupider than these slick operators and prosecuting them would require some brains and thinking. Do you want the police to get a headache?
Do you think most of these scammers vote republican?
(Sent Sep 22, 2008 2:22:38 PM)
How can we help this woman? Seriously, this is horrendous, and can a fund be set up to help this woman keep her home?
Karen, Erie, PA (Sent Sep 22, 2008 2:21:44 PM)
I've only read one person's reply regarding public records. I agree, too much private information is available to everyone, and should not.
Notices of Tax Records "should be" only available through the county tax assessor, under a licensed agreement with title companies. Why does everyone have the right to see who paid what for their homes, or what loans they have on the home, or if there are any notices served against any homeowner. It's just not right!
What ever happened to protecting our privacy?
Something needs to be done to stop allowing everyone to see what scammers prey on, and to stop allowing everyone's private information to be viewed by all. It is humiliating & degrading for anyone to have their private information available to others, if they have been having difficulty paying their mortgage too.
If this information would not be public, then these scammers wouldn't be able to target those in trouble, nor would they be able to see who paid what, vs what today the home may be worth.
If that information is needed by professionals in the industry of true assistance with selling, or refinancing, then they should have to log into the tax assessor's office, provide their license number, report what the information is needed for, and then be allowed entry if it is accepted. Period.
Yes, America's turmoil is caused by greed. So keep the greedy people out of other people's business, then watch them fall away.
(Sent Sep 22, 2008 2:20:53 PM)
READ THE FINE PRINT!
I feel for people who loose their homes. But it's not the bank's or the government's fault if they don't take the responsibility to know what they're signing.
What Second Chance did to this woman was unethical, and anyone who believes and karma or in a life hereafter knows this Foxx guy will get what's coming to him eventually. But unless the documents actually provided false information to her, everything he did was probably legal once she'd signed the deed to her house over to him.
I think there should be better laws protecting consumers, rather than bailing out banks and investors that tried to get fancy. But I also don't think the American public should have to take responsibility for home buyers or homeowners who don't do their homework.
Calirodan, Goleta CA (Sent Sep 22, 2008 2:20:30 PM)
I am not surprised homeowners were milked out of their homes and equity by these sleezy brokers and loan sharks. This is what has transpired due to "de-regulation of the lending industry and the watering down of our consumer protection agencies. We have not seen this type of "white collar" crime since the great depression era!! Welcome to Pottersville!!!
Jennifer, Portland Oregon (Sent Sep 22, 2008 2:20:20 PM)
Pay your bills and you wont have this problem! Thanks to you for the current housing market problems! Seems like a little payback coming your way, from those of us who actually pay our bills
(Sent Sep 22, 2008 2:20:00 PM)
The main thing that most people I have had this conversation with do not seem to realize is, the government is not bailing out the scammers and homeowners who ate more than they could pay for, the "bailout" is intended solely to relieve the banks and investors who control the nations capital reserves.
Some of the readers here seem to believe that it would be best that the government just said no and left the banks to fend for themselves. Well, at first glance that doesn't seem like a bad idea. The problem with that is if the government does just sit back and watch it and doesn't act, then every single dime you and I have now, or have earned in the past and every dollar of equity that you THINK you still have as a honest and timely payer of your debts will simply vanish and then the nation as a whole will be BROKE!
What that means to us, is that every company that you and I work for will be bought by the probably lowest bidder that is foreign owned. So the question to you as a taxpayer is a simple one...
IS IT IN YOUR BEST INTEREST TO PAY A FAIR SHARE AMOUNT OF ROUGHLY $2400.00 FOR THE APPROXIMATE $700 BILLION DOLLAR RESCUE???
THE ANSWER IS YES...(in case you didn't know it)!
Scammers and con-artist.... this is nothing new and did not create the bigger of the problems we are facing. Sound, logical and simple reasoning should keep a fairly intelligent person from being taken by a con-artist. Panic and greed are what feeds these people. It is YOUR responsibility to know what's right or wrong if you own anything. Though the Carters plight is bad, her ignorance of homeownership after five decades is her own fault. She should have asked the bank who holds the loan what to do, not a stranger who obviously offered a "too good to be true" deal!
As in all my blog entries I will say this, buy real estate, buy stocks and take an active part in the American economy outside of paying taxes and going to Walmart. NOW IS THE TIME TO INVEST IN AMERICAS ECONOMY... otherwise you just don't need to complain, because you're part of the problem and not the solution!!!!
THIS ELECTION VOTE FOR THE RIGHT PERSON...NOT A PARTY!
Freedom_Warrior, Orlando, Florida (Sent Sep 22, 2008 2:15:33 PM)
If anyone have been of victim of this legal robbery You have my deepest sympathy. My thoughts are with you. Hang in there. Something will work out in your favor
(Sent Sep 22, 2008 2:15:00 PM)
The last paragraph says it all in regard to borrowers who are close to or already in foreclosure. TALK TO YOUR LENDER!! SOONER RATHER THAN LATER IS BETTER. AS SOON AS YOU FIND YOURSELF IN FINANCIAL DIFFICULTY, IS THE TIME TO START TALKING TO YOUR LENDER. NOT ALL LENDERS ARE THE BIG COMPANIES, SOME ARE SMALLER INVESTORS WITH WHOM A BORROWER CAN MAKE ARRANGEMENTS, BUT NOT IF THEY WON'T CONTACT THE LENDER, OR IF THEY OR THE "FRAUD COMPANY" FILE BK AND THEN THE LENDER HAS TO GO THROUGH ITS ATTORNEY TO THE BORROWER'S ATTORNEY.
JOYCE, SAN DIEGO CA (Sent Sep 22, 2008 2:14:08 PM)
I was personaly married to a man that was doing this without me even knowing it. It wasn't until he kicked me out of his house that I found out what he was doing. I've Googled his name and found many people complaining about him ripping them off and not trusting him. BE CAREFUL PEOPLE, THESE PEOPLE REALLY DO EXIST AND HAVE NO SHAME TO THE GAME.
Embarrased Ex-Wife (Sent Sep 22, 2008 2:12:58 PM)
If people out there are stupid enough to believe what these people are saying to them they deserve it. The reason they are in this position in the first place is they bought a house they couldn't afford, stopped making their payments and assumed there would be SOMEBODY out there to bail them out.
Come to find out, now it might be the federal government with MY tax dollars. THAT is the biggest con of all time. I spend all day working, slaving to pay ALL of my mortgage payments ON TIME, knowing there will be NO ONE to bail me out. I would work 8 jobs if it meant that I was in jeopardy of losing my home. These lazy people are just looking for a quick and easy way out.
sick of slackers, rock hill, sc (Sent Sep 22, 2008 2:12:24 PM)
SEND A COMMENT
PLEASE READ: All comments must be approved before appearing in the thread; time and space constraints prevent all comments from appearing. We will only approve comments that are directly related to the blog, use appropriate language and are not attacking the comments of others. Firms mentioned in our comment area are welcome to add their own comments.