St Louis Mortgage - Beware of Foreclosure Scams

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					St Louis Mortgage Consumers – Beware of Foreclosure Scams
Floyd J. Tapia

St. Louis Refinancing Group Mortgage News -

Foreclosure scams...

The Federal Trade Commission (FTC) announced six new lawsuits brought against companies accused
of running foreclosure rescue and loan modification scams. The suits are the latest action federal and
state authorities are taking in “Operation Stolen Hope,” which to date includes 118 actions by 26 federal
and state agencies, including a total of 28 FTC lawsuits filed against alleged fraudulent firms.

According to the FTC, foreclosure “rescue” professionals identify targets by researching public
information about foreclosures. They often send a personalized letter to distressed homeowners and they
may also rely on public advertising. They promise they will save your home and may promise they can
negotiate a better deal with your lender.

1. But there’s always a catch. Often these firms want you to pay an upfront fee. Sometimes scam artists
require you to make payments directly to them while they negotiate with your lender. In both cases,
once the money leaves your hands, the scammer disappears.

2. Other tactics include having you sign documents that surrender the title of your home to the scammer,
or asking you to “rent-to-buy” your own home after surrendering title. The appeal of this scheme is that
you are told you can remain in your home as a renter and repurchase it within a few years. But the terms
of the deal are usually unfavorable for you, and the scam artist walks off with most of the home’s equity
or worse — if they default on the loan, you get evicted.

3. A variation on the theme occurs when a scammer says they have a buyer for the home, and asks you
to transfer the deed. The scammer then rents out the home and keeps the profits while the foreclosure
proceeds. Even worse, you are still responsible for the unpaid mortgage, because transferring a deed
doesn’t dismiss a mortgage obligation.

4. A final tactic is when a scam artist files a bankruptcy case in your name, sometimes without you even
knowing about it. The scam artist keeps the fee for his “services” during a temporary pause in home
foreclosure proceedings, while you end up with the fallout from having a bankruptcy on your credit

Although any financial decision requires your utmost attention and due diligence, St. Louis Refinancing
Group is in no way saying that all loan modification companies or offers are scams.

There are honest individuals who are determined to help as many homeowners as possible to remain in
their homes. However, you must be careful and read the fine print. We will be reporting more news on
legitimate loan modification companies in upcoming posts.

Liberty Lending Consultants St Louis mortgage division is just one of many mortgage brokers in St.
Louis who have a long term and successful track record in taking the needed time and care in making
your St. Louis refinancing loan a prosperous financial journey. Call us now at 877-334-0210 or 314-
334-0210 and our St. Louis home loan experts will assist you in getting the best mortgage for you and
your family.

References and Resources:

Description: The Federal Trade Commission (FTC) announced six new lawsuits brought against companies accused of running foreclosure rescue and loan modification scams.