Foreclosure Scam

I had written an entry recently about what I deemed to be a scam directed at an elderly client of mine, which got my blood boiling. I was angry because it seemed targeted at the elderly who are most vulnerable at the prospect of losing their homes.

The mushrooming “foreclosure fix-it industry” which is demanding up-front payments before doing any work, has fallen into the FTC’s radar, according to a Washington Post article. The article goes on to state: “[b]ut a new settlement from the Federal Trade Commission sends a blunt warning to the fast-growing foreclosure fix-it industry: If you take consumers' cash upfront and promise you'll save their homes, you'd better be able to deliver.” Or they will be charged with running a scam which violates Federal Law.

It seems the FTC (Federal Trade Commission) has had enough complaints and is now trying to shut down these scams which are preying on the fears of distressed homeowners by demanding up front payments to save their homes. The kicker is that these “professionals” were unable to do anything to stop the foreclosures anyway for the most parts, and those fortunate homeowners who were able to stop foreclosures were able to do so only by working with the lenders directly, with no assistance from these scammers.

See full article below in the Washington Post.

http://www.washingtonpost.com/wp-dyn/content/article/2009/01/16/AR2009011601902.html


Be wary of anyone who guarantees their work but demands upfront payments before doing any work, this is a red flag for some sort of scam. Please warn your elderly family members, so that they will not fall victims to these schemes.


Steve Mun, Silicon Valley Realtor
www.stevemungroup.com