April 6. 2009

U.S. Treasury Secretary Timothy Geithner

U.S. Treasury Secretary, Timothy Geithner, stated in very strong terms that the government is cracking down on “criminal actors” running scams to rob people of their savings and homes.

One of our friends, who is in his 60’s, was concerned about pre-foreclosure, after owning his home for many years and slightly falling behind last year.

A foreclosure service contacted him and he retained them. For months they told him they straightened out his mortgage and was paying the bank under a new plan, via the payments he sent.

Then he received a notice from the court stating the house was to be auctioned off for non-payment of the mortgage. The foreclosure service had been accepting his checks and never paid a dime to the bank, sending him fake invoices.

These predatory companies go to courthouses and also buy business newspapers that announce foreclosures. Then, they contact the homeowner by mail, phone or at their home, offering to get them up to date on the mortgage, via a payment plan, but illegally do one of two things:

1.) Keep the monthly payments for themselves, not paying the bank on the homeowner’s behalf

2.) Convince the homeowner to transfer the house title to the company, which one should never do, then sell the house out from under the homeowner or obtain an equity loan from it, keeping the money for themselves.

If this happened to you, report it to the FBI at http://www.fbi.gov. While the FBI isn’t the greatest, your case may be enough to convict criminals engaging in this misconduct.

Government cracking down on mortgage scams

WASHINGTON – Top federal and state officials on Monday announced a broad crackdown on mortgage modification scams, accusing "criminal actors" of preying on desperate borrowers caught up in the nation's housing crisis.

Government officials say scammers are seeking to take advantage of borrowers in danger of default by charging them upfront fees of $1,000 to $3,000 for help with loan modifications that rarely, if ever, pay off.

The frauds often involve companies with official-sounding names designed to make borrowers think they are using the Obama administration's efforts to help modify or refinance 7 million to 9 million mortgages.

…Homeowners can locate free housing counselors at http://www.makinghomeaffordable.gov

 or by calling (888) 995-HOPE.

http://news.yahoo.com