Jul 15, 2009 6:08 pm US/Eastern
FTC Warns Of Foreclosure Rescue Fraud
MIAMI (CBS4) ―
The Federal Trade Commission has issued new warnings that Foreclosure Rescue and Mortgage Modification fraud is increasing across the country. The move comes just days after Freddie Mac and Fannie Mae issued a similar warning that said scam artists are focusing on African-American and Hispanic homeowners desperate to save their homes.
"Fraud is certainly on the rise. If somebody asks you for a payment to avoid foreclosure, be suspicious. If someone offers to take your payments to pay your mortgage for you, be suspicious," said Zixta Martinez of Freddie Mac warns.
According to Peter Zalewski is a local real estate expert who tracks distressed properties said at the current pace, foreclosure and mortgage modifications scams will set new South Florida records too. He said lenders have filed more than 52,000 foreclosure actions in South Florida in the first six months of 2009.
The FTC said there are signs to watch out for to help avoid mortgage rescue and foreclosure fraud:
- Guarantees to stop the foreclosure
- Instructs you not to contact your lender, lawyer, or credit or housing counselor
- Collects a fee before providing you with any services
- Accepts payment only by cashier's check or wire transfer
- Encourages you to lease your home so you can buy it back over time
- Tells you to make your mortgage payments directly to it, rather than your lender
- Tells you to transfer your property deed or title to it
- Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
- Offers to fill out paperwork for you even if you haven't had a chance to read thoroughly or that you don't understand.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
The top stories on CBS4.com
Double Homicide In NW Miami-Dade
Click to enlarge
Stumble It!
Reporting
