Kentucky Rescue and Predatory home mortgage fraud
Rescue and Predatory home mortgage frauds are common. Recently a person came into our office after sending 10,000 dollars to a company in California. That company claimed they would save their home from foreclosure. The company claimed they would take payments from them and then make mortgage payments and get them a mortgage modification.
The mortgage company filed bankruptcy in the homeowner’s name. It then forged an assignment of the mortgage to delay the foreclosure process. No defense was made to the foreclosure, and eventually, their home was sold. When they came to us, it was after the house was sold. They were too late to file a Chapter 13 and save the house by catching up the mortgage payments.
Scam artists may claim to be the mortgage company, government agencies or an investor. They will often promise to buy your home, work out a deal with the mortgage company or make your home payments for you. These persons often steal your home by getting you to sign the deed and mortgage over to them. They may ask you to forward the mortgage payments to them or otherwise pay them for services. These companies rarely deliver what they promise.
One example of Rescue and Predatory home mortgage fraud
In early 2014 what seems another mortgage fraud was uncovered. Mississippi is one of the lowest educational levels in the United States. People in Mississippi often operate on trust more than by understanding what they are signing. They are very susceptible to frauds and scams, especially in hard times, like when they are facing foreclosure. It is common for frauds to claim they will service the loan and make payments for you to save your home and credit. It is also common to have someone ask to Deed your house to them. They will promise to lease the house back to you often with an option to buy back the house later. Below is just one more example of how big this can get.
William Dickenson, a Jackson Mississippi man, was indicted on Bankruptcy fraud during the mortgage crisis of 2008-2012. The allegations are he serviced mortgage loans through his company and then left the country with the money for the mortgage payments with over $9 million. Essentialy what Dickenson did was to take the mortgage payments from persons and payments for foreclosure prevention. He failed to pay any mortgages and the properties were then sold for non payment. He delayed the foreclosures for an extended period but left the country to Panama with the two years of mortgage payments from thousands of home owners in Mississippi.
Even after the fraud was discovered Community Home Financial Services advised 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. There are some options the homeowner has to save their home.
How to save your home
Primarily the homeowner can catch up the payments by filing a Chapter 13 or sell the home and keep some of the equity. The homeowneer can also defend the mortgage and delay the process for a time. They may obtain a mortgage modification, workout agreement or short sale the home. But if the payments are not made the house eventually goes into foreclosure.