VIEWS: 6 PAGES: 26 POSTED ON: 3/23/2010
MORTGAGE FRAUD AND FORECLOSURE RESCUE SCAMS Presented by Catheryn Oakland Recoupment Counsel, Region C U.S. Statistics for 1906 The year is 1906. What a difference a century makes. Here are some of the U.S. statistics for the Year 1906: The average life expectancy was 47 years. Two out of every 10 adults couldn’t read or write. Only 6% of all Americans had graduated from high school. Only 14% of the homes had a bathtub, and 8% a phone. A three-minute call from Denver to New York City cost $11. Only 8,000 cars & 144 miles of paved roads existed. The maximum speed limit in most cities was 10 mph. Alabama, Mississippi, Iowa, and Tennessee were each more heavily populated than California, the 21st most populous state with a mere 1.4 million people. The population of Las Vegas was only 30! The American flag had 45 stars. AZ, OK, NM, HI, and AK hadn’t been admitted to the Union yet. Crossword puzzles, canned beer, and iced tea didn’t exist. IN THE NEWS Foreclosure Rates % change % change end 2006; % 1- Household Rate Jan 07 Feb 06 Rank State Total yr. Rank (1 per…) - Feb - Feb Change 07 07 U.S. 109,654 1,055 34.9 -3.91 11.64 1 CO 4,864 376 284.0 9.30 28.63 2 2 NV 2,213 392 96.0 24.36 77.40 1 21 WA 1,261 1,897 -20.2 -23.76 -19.32 20 24 AK 79 2,597 12.8 -19.00 9.46 31 36 OR 268 5,432 -47.5 0.55 -1.63 25 49 ME 6 108,649 0.0 0.00 0.00 49 50 VT 1 294,382 -83.0 -50.00 -50.00 50 Remain calm even when it seems rather hopeless Options of Homeowner upon Foreclosure Reinstate loan Refinance Chapter 13 filing Sell property at FMV OR Foreclosure Rescue Scam Definition: A “foreclosure rescue scam” is a transaction or set of related transactions designed to prey upon homeowners faced with looming foreclosures. The scam artist’s objective is to take the homeowner’s equity without providing any significant benefit. Tactics Describing the transaction terms orally to the homeowner, but preparing documents containing different (less favorable) terms; Arranging for homeowners to sign incomplete or blank documents (then filling in the terms later); Using delay tactics to undercut the homeowner’s ability to utilize other alternatives; Adding exorbitant fees into the transaction; Withholding important documents and information from the homeowner. Recognizing the Scam I. Title – a. Foreclosure notices of record – b. QC or record to an unrelated party without consideration / excise tax paid – c. Request for supplemental title showing new vesting – deal may be proceeding in pieces – d. Request for Endorsement does not equal facts II. Escrow – a. Asked to prepare & close a QC to an unrelated party for no consideration – b. Recognize a “cast of characters”, including the one pressing the deal, appraiser, notary on docs – c. Docs don’t make sense. Why would homeowner agree to this? Deed with buy back? – d. Asked to close in pieces or record without full payment to homeowner – e. Transaction described one way does not equal docs – f. Excessive fees paid or inflated appraisal
"FORECLOSURE RESCUE SCAMS"