Rescue and predatory home mortgage frauds are common. Here’s an example for you. One person sends $10,000 dollars to a company in California because that company states they will save that person’s home from foreclosure. In addition, the company claims they will accept payments from the person and make their mortgage payments for them. They also state that the person will get a mortgage modification.
But, what actually happens is the mortgage company files bankruptcy in the homeowner’s name. After that, they forge an assignment of the mortgage to delay the foreclosure process. However, they make no defense to the foreclosure, and eventually, the home sells.
I know this sad story because those people came to us after the house was sold. But, at that time, they were too late to file a Chapter 13 and save the house by catching up on the mortgage payments.
How to Recognize Kentucky Rescue and Predatory Home Mortgage Fraud
Scam artists might claim to be the mortgage company, government agencies, or an investor. They often promise to buy your home, work out a deal with the mortgage company, or make your home payments for you. What’s worse, these people often steal your home by getting you to sign the deed and mortgage over to them. They might even ask you to forward the mortgage payments to them or otherwise pay them for services. However, these companies rarely deliver what they promise.
It is common for frauds to claim they are servicing the loan in making payments for you to save your home and credit. It is also a common scam to have someone ask to deed your house to them. They convince you to do this by promising that they will lease the house back to you. In fact, they might even throw in an option to buy back the house at a later time.
Below is another example of how “predatory” these frauds really do get.
One Example of Rescue and Predatory Home Mortgage Fraud
The following is a story about the uncovering of mortgage fraud in Mississippi, in early 2014. First, you must understand that Mississippi has one of the lowest median levels of education in the United States. People in Mississippi often operate on trust more than by understanding what they sign. So, they are very susceptible to frauds and scams, especially in hard times, such as when they are facing foreclosure.
William Dickenson, a Jackson, Mississippi man, was indicted on bankruptcy fraud during the mortgage crisis of 2008-2012. The allegations are that he serviced mortgage loans through his company and then left the country with over $9 million that was intended for the mortgage payments. Dickenson essentially stole all the mortgage payments and payments for foreclosure prevention that unsuspecting debtors paid to him.
Of course, he failed to pay the mortgages and the properties were then sold for non-payment. He delayed the foreclosures for an extended time, but in the meantime, fled to Panama with the two years of mortgage payments from thousands of homeowners in Mississippi. Even after the discovery of this fraud, Community Home Financial Services continued to advise homeowners to send payments to a Las Vegas address which was forwarded to Costa Rica and later a Miami address.
This fraud is just one example of how easily and often rescue and predatory home mortgage fraud happens. However, there are other far better options for the homeowner to save their home!
Saving Your Home from Foreclosure
Primarily, as a homeowner, you can catch up on the payments by filing Chapter 13, sell the home, and keep some of the equity. The homeowner can also defend the mortgage and delay the process of foreclosure for a time. They may also obtain a mortgage modification, workout agreement, or do a short sale. But if the payments are not made the house eventually goes into foreclosure.
However, it is important to file sooner than later. Filing as soon as possible gives you more options for bankruptcy. In fact, you might be able to keep property that you will lose if you wait too long after the foreclosure files against you. Therefore, for the best outcomes from your bankruptcy, contact an attorney as soon as a foreclosure filing against your home occurs.
Resources for Foreclosures
Where to Report Foreclosure Scams
Federal Trade Commission (FTC) for foreclosure scams.
Trustee Regions and Offices for foreclosure scams that involve bankruptcy
Other Related Information
If you want to settle your foreclosure lawsuit and harassing debt collectors, contact us today to see what we can do for you. Contact my office right away to start the conversation. Nick C. Thompson, Attorney: 502-625-0905